Confidence among German analysts and investors rose in June, according to a survey by the ZEW economic think tank.
ZEW said today its expectations indicator, based on a survey of 315 analysts and institutional investors, rose to 19.5 from 13.9 in May.
"The clear increase in business confidence may be due to the sharp depreciation of the euro as well as the hope that necessary reforms will be actively implemented after the autumn elections," ZEW said.
A separate gauge of current conditions eased slightly to -70.0 from -69.3 in May, the institute said.
The ZEW survey provides a pointer to the direction of the Ifo institute's closely-watched measure of business sentiment, seen as a more important indicator of the health of the German economy.
Munich-based Ifo is due to publish the results of its June survey on June 27th. In May, Ifo's business climate index unexpectedly fell to its lowest level in almost two years, adding to evidence that German growth slowed significantly in the second quarter.
The ZEW began collecting responses for its latest survey on June 6th and closed it on Monday.
Most of those polled for ZEW's May survey replied before Chancellor Gerhard Schroeder called for early elections to be held in the autumn, a move that has been welcomed by the business community and raised hopes of progress on reforms.