German economic sentiment beats expectations in December, says ZEW

German economic sentiment rose for the second consecutive month in December, according to the ZEW Center for European Economic Research in Mannheim.

The headline ZEW expectations index rose to 16.1 in December from 10.4 the previous month, surpassing forecasts for a reading of 15.

"While the large influx of refugees is above all a major challenge facing policy-makers and civil society in Germany, the economic slowdown in emerging markets is exerting pressure on the German export industry,” said ZEW president Professor Clemens Fuest.

“Overall, however, confidence is growing that the German economy is sufficiently robust to meet these challenges in the coming year.”

The assessment of the current economic situation in Germany was largely unchanged, with the index nudging up 0.6 points to 55.0 and beating expectations for a reading of 54.2.

ZEW's Indicator of Economic Sentiment for the Eurozone rose 5.6 points to 33.9.