Confidence in Europe's largest economy is on the rise.
The Centre for European Economic Research unveiled its widely watched ZEW indicator of economic sentiment Tuesday, which showed a jump of 9.5 points, albeit to a reading of minus 19 points.
The organiztion said the rise of the indicator might reflect that the recent economic upswing in Germany is gaining momentum, creating a stable foundation for next year. Exports are developing dynamically, orders remain stable, and German companies are increasing investments in the expansion of their production capacities. The recovery on the labor market also strengthens consumer confidence.
"Expectations have passed through the trough and are now on the rise thanks to robust economic perspectives. Economic policy makers are called upon to use this chance and to show more stout-heartedness and targeted approaches," said ZEW President Prof. Dr. Dr. h.c. mult. Wolfgang Franz.
This month, the financial experts' assessment of the current economic situation in Germany also improved significantly. The corresponding indicator is up from 53.0 points to 63.5 points in December.
Economic expectations for the euro zone improved in December. The indicator rose by 8.0 points and now stands at minus 3.0 points. The corresponding indicator for the current economic situation in the euro zone increased significantly in this month by 6.8 to 56.8 points.
More than 300 analysts and institutional investors participated in this month's survey, and participants were asked from November 27 to December 11 about their medium-term expectations concerning economic activity and capital markets.