German ZEW better than expected in January

German investor confidence came in a little better than expected for January, according to the latest survey from the ZEW Center For European Economic Research in Mannheim.

The index of investor and analyst expectations fell by 5.9 points to 10.2 in January, following two consecutive increases.

Still, the reading was ahead of economists’ expectations for 8.2.

The index for current expectations improved slightly, however, rising 4.7 points to 59.7 and exceeding expectations for a reading of 54.

"The beginning of the new year is characterised by capital market turmoil in China, which has also led to significant share price declines in Germany. As in the previous year, weak economic growth in China and other important emerging markets puts a strain on Germany's economic outlook," said Professor Sascha Steffen, head of the International Finance and Financial Management research department at ZEW.

Pantheon Macroeconomics said the headline was downbeat, "but slightly better than the consensus, particularly given the increase in the current situation index, indicating that investment analysts have opted to look through recent volatility, at least to some extent".