Investing.com – German economic sentiment improved significantly more-than-expected in February, turning positive for the first time since May 2011, industry data showed on Tuesday.
In a report, the ZEW Centre for Economic Research said that its index of German economic sentiment improved by 27.0 points to 5.4 in February, compared to January’s reading of minus 21.6.
Analysts had expected the index to improve by 10.0 points to minus 11.6 in February.
On the index, a level above 0.0 indicates optimism, a level below 0.0 indicates pessimism. A higher value was last seen in April 2011.
Meanwhile, economic sentiment in the euro zone rose by 24.4 points in February to minus 8.1 from minus 32.5 in January. Economists had expected euro zone economic sentiment to improve by 11.4 points to minus 21.1.
The further increase of economic sentiment indicates that the recent slowdown in economic growth isn’t likely to last in the view of the surveyed financial market experts. Positive economic data from the U.S nourish hope for a more stable global business climate.
Moreover, the progress in the negotiations of the Greek government with its creditors may have reduced economic uncertainty in the euro zone.
Commenting on the report, ZEW President Wolfgang Franz said, “From the perspective of the financial market experts there is a good chance that the German economy will experience a slight uplift in the second half of 2012.”
“Still, the solution of the crisis in the euro zone remains an important task," Mr. Franz added.
Following the release of the data, the euro turned fractionally higher against the U.S. dollar, with EUR/USD easing up 0.05% to trade at 1.3194.
Meanwhile, European stock markets were mixed to lower. The EURO STOXX 50 dipped 0.05%, France’s CAC 40 shed 0.15%, Germany's DAX rose 0.1%, while London’s FTSE 100 slumped 0.1%.
In a report, the ZEW Centre for Economic Research said that its index of German economic sentiment improved by 27.0 points to 5.4 in February, compared to January’s reading of minus 21.6.
Analysts had expected the index to improve by 10.0 points to minus 11.6 in February.
On the index, a level above 0.0 indicates optimism, a level below 0.0 indicates pessimism. A higher value was last seen in April 2011.
Meanwhile, economic sentiment in the euro zone rose by 24.4 points in February to minus 8.1 from minus 32.5 in January. Economists had expected euro zone economic sentiment to improve by 11.4 points to minus 21.1.
The further increase of economic sentiment indicates that the recent slowdown in economic growth isn’t likely to last in the view of the surveyed financial market experts. Positive economic data from the U.S nourish hope for a more stable global business climate.
Moreover, the progress in the negotiations of the Greek government with its creditors may have reduced economic uncertainty in the euro zone.
Commenting on the report, ZEW President Wolfgang Franz said, “From the perspective of the financial market experts there is a good chance that the German economy will experience a slight uplift in the second half of 2012.”
“Still, the solution of the crisis in the euro zone remains an important task," Mr. Franz added.
Following the release of the data, the euro turned fractionally higher against the U.S. dollar, with EUR/USD easing up 0.05% to trade at 1.3194.
Meanwhile, European stock markets were mixed to lower. The EURO STOXX 50 dipped 0.05%, France’s CAC 40 shed 0.15%, Germany's DAX rose 0.1%, while London’s FTSE 100 slumped 0.1%.