The six month economic outlook for the German economy improved by 7 basis points to 17 points in September, representing a rebound compared to the previous month, according to the ZEW institute.
In August the index had dropped by more than 7 basis points due to growing analyst concerns about the appreciation of the Euro and scandals in the German automotive industry. However, despite the upcoming German elections, the index recovered.
“Solid growth figures for the second quarter of 2017, the recent strong progress of the credit business as well as an increase in public and private investments will have contributed to this much more optimistic assessment compared to the previous month. The solid global economic developments backs up these expectations. Even the German elections do not to appear to generate particular uncertainties and concerns about the recent appreciation of the Euro appear to have become less pressing” comments ZEW president Achim Wambach.
With the recently improved figures, the outlook for Germany still remains below its historical average of 23.8 basis points.The assessment of the current economic situation in Germany remains almost unchanged at 87.6 basis points, 1.2 basis points higher compared to August. The outlook for the Eurozone improved by 2.4 basis points to 31.7 points while the index for the current economic situation in the Eurozone dropped by 2.9 points to 35.5 points.
The ZEW index is based on a monthly survey among analysts and institutional investors in Germany, the September index had 203 respondents.