Sentiment among German investors on the outlook for Europe's largest economy was stronger than expected in March and reached an eight-month high, a survey showed today.
The Mannheim-based ZEW economic research institute said its economic expectations indicator for Germany, based on a survey of 296 analysts and institutional investors, rose for a fourth straight month in March to +5.8 from +2.9 in February.
European shares swung back into positive territory after the higher-than-expected ZEW figure.
The survey, which was conducted between February 26th and March 12th, yielded the strongest reading since July last year, and beat a Reuters consensus forecast for a rise to +3.3.
ZEW head Wolfgang Franz said the German economy was still expanding and that demand for labour was rising.
Recent news from the corporate sector in Germany shows firms are upbeat about the outlook for the economy.
Volkswagen, Europe's biggest car maker, said last week pre-tax profit in 2008 would exceed its previous target. Germany's second-biggest steelmaker, Salzgitter, said on Thursday 2006 earnings rose 18 per cent and predicted sales would remain strong this year.
