Confidence among investors in Germany inched up in a monthly survey Tuesday as the dashboard of Europe's largest economy remained green, but fell short of forecasts for a big leap. -Collected
German investor confidence edged up in November, a closely watched survey found Tuesday, continuing a string of good news for Europe's top economy but falling short of forecasts for a large leap. The ZEW institute's headline barometer, which measures financial players' expectations for the coming months, added 1.1 points to reach 18.7.
Analysts surveyed by Factset had forecast a jump to 20.5 points. "The prospects for the German economy remain encouragingly positive," ZEW president Achim Wambach said in a statement. "Overall high levels of growth across Europe in the third quarter are supporting further growth in Germany and boosting expectations for the coming six months."
The reading continues a recovery from a dip in August, and comes as Europe's top economy is firing on all cylinders. The German government on Tuesday said the economy grew by a faster-than-expected 0.8 percent in the third quarter, driven by strong domestic and foreign demand and increased investment.
"This favourable economic climate should be used to create a stronger and more robust basis for future growth," said Wambach, in an apparent nod to the ongoing coalition talks in Berlin following September's inconclusive election. Calls are growing for the next German government to do more to future-proof the nation and spend more of the proceeds of its growth after years of under-investment.
Germany's "wise men" council of economic experts last week advised the incoming government to reduce public debt, dismantle or lower some taxes, and create an "innovation-friendly" environment for the digital economy. The Mannheim-based ZEW institute questioned 198 analysts and institutional investors to compile its survey.
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