German Investor Sentiment Rises for Fifth Consecutive Month

In a press release issued on Tuesday, the ZEW reported that investor sentiment rise to a reading of -3.5 in March, despite expectations of a fall back to -8.0 from -5.8 in February.

While the improvement from February to March has slowed compared to previous month, the impression remains that investors are becoming more hopeful regarding the German economic outlook in six-months time, the ZEW said.

“According to the financial market experts, the economic slowdown is gradually phasing out,” ZEW President Dr. Wolfgang Franz said. “The bottom of the recession is likely to be reached this summer.”

Sentiment towards the current situation also surprised to the upside, falling only to -89.4 from February’s -86.2. Economists had forecast a more pronounced decline to -90.0.

Despite the continued deterioration in the current situation component, Franz also noted that “there are first signs of hope, which should “not be played down”.

Meanwhile, euro zone investor confidence also unexpectedly improved in March, rising to a reading of -6.5 from -8.7 previously. Economists had forecast a fall back to -12.0 for the month.