‘[The fact that confidence] only shows a slight upward movement is a reflection of the current uncertainty surrounding future economic development. With regard to the economic situation in Germany, no clear conclusion can be drawn from the most recent economic signals’. – Achim Wambach, ZEW
Investor sentiment in the Euro zone’s largest economy, Germany, improved markedly in March but less than analysts expected, a report released on Tuesday showed. The Mannheim-based Centre for European Economic Research (ZEW) said its German Economic Sentiment Index came in at 12.8 points for March, slightly up from the preceding month’s 10.4. However, market analysts anticipated a bigger increase to 13.2 during the reported period. Data also showed the Current Conditions Index climbed to 77.3 from 76.4 points seen in February, falling behind analysts’ expectations for a rise to 78.0. The ZEW President Professor Archim Wambach highlighted that risks surrounding the upcoming federal elections and the future of US foreign policy remained high, and, therefore, it was not possible to provide a clear view on the current state of the German economy. In the meantime, the Euro zone ZEW Indicator of Economic Sentiment advanced to 25.6 points in March from the prior month’s 17.1, surpassing forecasts for a reading of 19.3. Furthermore, the indicator for the current economic situation in the region came in at 7.4 in March, up from February’s 2.8. Any reading above the 0.0-point level reflects general investor optimism. The Euro fell against other major currencies shortly after the release.