Germany's economic confidence strengthened more-than-expected in November as investors expect economic conditions to improve in coming six months, results of a closely watched survey showed Tuesday.
The investor sentiment index rose notably to 10.4 in November from 1.9 points in October, the survey carried out by the Mannheim-based Centre for European Economic Research, or ZEW revealed. It was well above the expected score of 6.
The indicator has improved for the first time following seven consecutive declines.
"The outlook for the German economy is brightening again towards the end of the year," ZEW President Professor Clemens Fuest said. Economic pessimism appears not to have increased after the terror attacks in Paris, he added.
"The currently high level of consumption in Germany, the recent decline in the external value of the euro, and the ongoing recovery in the United States are likely to bolster the robust development of the German economy," Fuest added.
The current conditions index fell 0.8 points to 54.4 in November. This was the lowest reading since February, when the score was 45.5.
At the same time, economic sentiment for the Eurozone weakened in November. The corresponding index dropped by 1.8 points to 28.3 points. The indicator for the current situation in the euro area climbed to a value of minus 10.0 points.
Eurozone economic growth eased to 0.3 percent in the third quarter from 0.4 percent a quarter ago. Likewise, the German economy grew only 0.3 percent on weak investment and foreign trade.
Early signs of a slowdown in Germany coupled with the uncertainty surrounding terrorist attacks provide further justification for the European Central Bank to increase its policy support next month, Jennifer McKeown, an economist at Capital Economics, said.
ECB President Mario Draghi last week strongly hinted that the bank may boost its stimulus in December as policymakers are increasingly concerned over the persistence of negative inflation.
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April 10, 2026 16:21 ET Inflation data from the U.S. was the main data event this week as the conflict in the Middle East continue. The minutes of the latest Fed policy session and the survey data on the services sector also made headlines. In Europe, manufacturing orders data from Germany was in focus. Price data from China drew attention in Asia.