German investor confidence improved more than expected in March due to expectations of an interest rate cut by the European Central Bank and positive signals from China, economic research institute ZEW said on Tuesday.
The ZEW reported a rise in its economic confidence index to 31.7 points from 19.9 in February, beating analysts’ estimates in a Reuters poll of 20.5.
“More than 80% of respondents expect the ECB to cut interest rates in the next six months,” said ZEW president Achim Wambach, adding that this could explain a more optimistic outlook for the construction sector.
“The German export sector benefits from rising economic expectations for China, as well as the expected depreciation of the dollar against the euro,” he said.
Data released on Monday showed China’s industrial production and retail sales beat expectations in the January-February period, adding to recent better-than-expected export and consumption inflation indicators that marked a solid start to this trend. ‘year.
In comparison, the ZEW’s current situation assessment improved only slightly, rising from -81.7 last month to -80.5 and beating the decline to -82.0 expected by analysts.
VP Bank chief economist Thomas Gitzel said the rise in both figures was positive news for Europe’s largest economy and a reason to expect improvement in the summer months.
“The German economy is accelerating: we could even call it a spring awakening of the German economy,” he said.
Source: Terra
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