German investor confidence little changed in February: ZEW

15th February 2011, Comments 0 comments

German investor confidence is little changed this month, edging up to an indexed 15.7 points from 15.4 points in January, the closely followed ZEW survey showed on Tuesday.

"The almost unaltered level of the indicator suggests that financial market experts have remained confident about the recovery of the German economy," a statement said.

Analysts polled by Dow Jones Newswires had nonetheless expected a bigger rise to 20 points.

"Investor sentiment is continuing to be buoyed by the reasonably upbeat economic data," Capital Economics economist Ben May said.

ZEW noted that investors were encouraged that the degree of capacity utilisation of German companies has now surpassed its 10-year average.

The overall indicator, which measures financial market expectations, remained below its historical average of 26.7 points however.

A measure of how investors view the situation at present improved again meanwhile, gaining 2.4 points to 85.2 points, compared with an analyst forecast for a small decline.

"Still going strong," ING senior economist Carsten Brzeski said, noting it was this measure's 21st consecutive increase and the highest level seen since July 2007, just before the global financial crisis erupted.

"Today's ZEW reading is in line with our expectation that the German economy should return to above-trend growth in 2011," Brzeski said.

© 2011 AFP

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