Investing.com - German economic sentiment improved in March, albeit slightly less than economists had forecast, according to a report released on Tuesday.
The ZEW Centre for Economic Research said that its index of German economic sentiment rose by 2.4 points to 12.8 this month.
Analysts had expected a reading of 13.1 up from 10.4 in the preceding month.
The current conditions index ticked up to 77.3 from 76.4 in February, falling slightly short of expectations for a reading of 78.0.
"The fact that the ZEW Indicator of Economic Sentiment only shows a slight upward movement is a reflection of the current uncertainty surrounding future economic development," ZEW President Professor Achim Wambach said.
"With regard to the economic situation in Germany, no clear conclusions can be drawn from the most recent economic signals for January 2017."
"While industrial production and exports witnessed a positive development, the figures for incoming orders and retail sales were less favourable. The political risks resulting from upcoming elections in a number of EU countries are keeping uncertainty surrounding the German economy at a relatively high level," he added.
Meanwhile, the index of euro zone economic sentiment improved to 25.6 from February’s 17.1, against forecasts for a reading of 19.3.
On the index, a level above 0.0 indicates optimism, a level below 0.0 indicates pessimism.