German business sentiment unexpectedly improves in December - ZEW
German business sentiment unexpectedly improved in December, according to a survey released on Tuesday by the ZEW Center for European Economic Research in Mannheim.
The headline ZEW investor expectations index rose to 15.7 from 7.4 the month before, beating expectations for a reading of 6.2.
Meanwhile, the current situation index fell 1.7 points to -93.1. Analysts were expecting a reading of -92.6
ZEW President Achim Wambach said: "With snap elections ahead in Germany and the resulting expectations of an economic policy encouraging private investment as well as the prospect of further interest rate cuts, the economic outlook is improving.
"Our daily analyses also show that after the meeting of the European Central Bank’s Governing Council on 12 December, experts still expect further interest rate cuts for the coming year. The fact that the majority of the survey respondents expect a stable or falling inflation rate in the eurozone supports this assessment. The experts appear to assess the recent rise in inflation as a temporary phenomenon."