The confidence of German investors and analysts in the economy improved considerably in January. This is according to figures from ZEW research institute.
The ZEW index, which reflects confidence in the next three to six months, came out at 26.7 compared to 10.7 a month earlier. Economists generally counted on a score of 15.
Confidence is supported by the provisional trade agreement that the United States and China have reached, while there are also more positive sounds from German industry after last year’s weakness. Last month the ZEW index returned to positive territory for the first time since April. This means that there are more people who expect an improvement in economic conditions than people who anticipate a deterioration.
According to ZEW chairman Achim Wambach, the hope has grown that the negative effects of the trade war on the German economy will turn out less strongly than previously feared.