- German ZEW Investor Confidence Rises More Than Expected in April
German investor confidence rose more than anticipated, as Europe’s largest economy continues to gather momentum.
The ZEW Center for European Economic Research in Mannheim said on Tuesday that its index of investor and analyst expectations, which aims to predict economic developments six months ahead, rose to 19.5 in April from 12.8 the previous month. Economists surveyed predicted an increase to 14.8, according to the median estimate.
Recent data suggest that German industry is poised to accelerate, with both factory orders and output rising in February, and the Bundesbank has also said the economy is being propelled by manufacturing and domestic demand. Even so, elections in France, Brexit negotiations and the risk of trade tensions with the U.S. may cloud the outlook and dampen confidence.
“Economic activity in Germany is proving very solid in the first quarter, as shown by positive data for industrial production, construction and retail sales in February,” ZEW President Achim Wambach said in a statement. “A consistently strong labor demand is also strengthening private consumption. Financial analysts expect that this positive trend will continue.”
ZEW’s gauge for current conditions rose to 80.1 in April from 77.3. A measure for expectations in the euro area advanced to 26.3 from 25.6.