BERLIN (Reuters) -German investor morale improved more than expected in November, entering positive territory for the first time since April, the ZEW economic research institute said on Tuesday.
The institute’s economic sentiment index rose to 9.8 points from -1.1 points in October, beating forecasts by analysts polled by Reuters of a November reading of 5.0 points.
The expectations index rose for a fourth straight month, suggesting respondents expect the economic situation in Germany to improve over the coming six months.
However, the assessment measuring the current situation in Germany was barely changed, rising by 0.1 points to -79.8.
“These observations support the impression that the economic development in Germany has bottomed out,” said ZEW president Achim Wambach.
“The unchanged assessment of the current situation is particularly remarkable given the deterioration in the assessment of the overall economic situation in the eurozone.”
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VP Bank chief economist Thomas Gitzel pointed to falling energy prices, no further deterioration in the interest rate situation and falling inflation as contributing to the improved outlook.
“Nobody is expecting the German economy to suddenly enter a phase of dynamic growth, but it would be good if the difficult economic situation did not deteriorate further,” said Gitzel.
(Reporting by Miranda Murray, editing by Linda Pasquini and Christina Fincher)