GERMAN INVESTOR confidence has risen to a three-year high, according to a closely watched index, pushing up the euro up against the dollar yesterday.
The news came as official EU data showed inflation in the euro zone was at a standstill in May.
The German Zew index, complied by Mannheim’s Centre for European Economic Research, said its monthly economic sentiment indicator rose 13.7 points in June to 44.8 points.
The eighth consecutive rise lifted hopes that Europe’s largest economy is beginning to shake off the uncertainty of recent months.
“The assessment of the experts suggests that the economic downturn dynamics are currently coming to rest,” said Zew chief Wolfgang Franz of the poll of 271 analysts and institutional investors. “Furthermore, they see tendencies for a recovery at the end of this year. This cautious optimism should not be destroyed by overly pessimistic projections.”
Further improving the mood in Germany yesterday was a report suggesting the export sales market had stabilised. It showed a rise in the balance of optimistic against pessimistic expectations, to minus 27 in April and May from minus 35 in a February survey.
