Germany's economic confidence rose for the fifth month in a row and at a faster than expected pace in February, results of the ZEW survey showed Tuesday, adding strength to the view that the biggest euro area economy may indeed avoid a recession.
The ZEW Indicator of Economic Sentiment climbed to 28.1 points from 16.9 in January, the Mannheim-based think tank said. Economists had expected a score of 22.0. The reading improved sharply for a second straight month.
Latest improvement was driven by a fourth successive increase in the assessment of the German economic situation. The corresponding index gained 13.5 points to reach minus 45.1. Economists had forecast a score of -50.5.
Despite the sustained improvement, the reading remained deep in the negative territory.
"As in the previous month, the increase in expectations can be traced back to higher profit expectations in the energy- and export-oriented sectors as well as the consumer-related parts of the economy," ZEW President Achim Wambach said.
"Expectations for long-term interest rates are also rising and the banking sector indicator has reached its highest level since 2004."
by Jyotsna V
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