Germany’s economic sentiment indicator rises more than expectations in October

Germany’s investor confidence rose more than consensus projection in October. The ZEW Indicator of Economic Sentiment for the nation rose 5.7 points to 6.2 points in October. Long-term average of the indicator is 24.1 points.  The rebound in the economic confidence signals a relatively strong economic activity in Germany, noted ZEW President Achim Wambach.

“However, positive impulses from industry and exports should not distract from existing political and economic risks. In particular, the risks concerning the German banking sector are currently a burden to the economic outlook”, added Wamback.

Meanwhile the current situation index for the nation also rose in the month. It gained by 4.4 points from the prior month to 59.5 points. The current situation index also came in above the consensus expectations, which was at 55.5 points.

Moreover, financial market experts’ confidence regarding euro area’s economic development has also rebounded markedly. The respective indicator has risen by 6.9 points to 12.3 points in October. This has also come in above consensus expectations, which was at 6.3 points. However, the current situation indicator for the eurozone dropped 2.3 points in October to -12.8 points.