Investor confidence in Germany improved more than expected in August, according to data released Tuesday from the economic research institute ZEW, which warn, however, that experts see that current conditions improve only slowly.
Specifically, the survey on the economic sentiment of investors rose to 71.5 from 59.3 points the previous month, far beating the 58.0 forecast in a Reuters poll of economists. A separate indicator of current conditions fell to -81.3 points from -80.9 the previous month. That compared to a consensus forecast of -68.8 points.
"Hopes for a rapid economic recovery have continued to grow, but the assessment of the situation is only slowly improving," said ZEW President Achim Wambach, adding that the situation varies from one sector to another.
The Moderate Current Conditions Index indicates that "The German economy is still suffering the impact of the pandemic"say Oxford Economics analysts, adding that they foresee that "the recovery will be more difficult beyond the initial rebound in activity when the lockdown ends." However, they believe that "the sharp rise in the expectations index shows growing optimism about the recovery in the coming months. We still expect the German economy to contract around 6% overall this year, but this would leave a significantly better situation than that of the eurozone aggregate ".
For its part, from Pantheon Macroeconomics they point out that this data "is not a forecast for the stock markets, but it shows that investors confident that the rally will continue. After all, this is good news. "