Germany's economic sentiment improved for the fourth straight month in March, confirming the positive outlook for business activity, the Mannheim-based Centre for European Economic Research (ZEW) said Tuesday.
The indicator of economic sentiment rose by 16.9 points to a level of 22.3 in March, the highest level since June 2010. Economists had expected the index to rise to 10.
Meanwhile, the assessment of the current economic situation fell by 2.7 points to the 37.6 points-mark. The reading was well below the consensus forecast of 41.5.
"In Germany, due to the good employment situation, domestic demand is likely to continue to stimulate growth," said ZEW President Wolfgang Franz. "Nevertheless, risks remain due to the low business activity in important European countries and the disruptions in the banking sector."
Economic expectations for the Eurozone increased by 19.1 to 11.0 points in March. The indicator for the current economic situation gained 0.7 points to minus 48.4 points.
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