German investor confidence strengthened unexpectedly in September as financial experts expect a noticeable recovery in the economy, survey data from the ZEW – Leibniz Centre for European Economic Research showed on Tuesday.
The economic confidence index rose to 77.4 in September from 71.5 in the previous month, while it was forecast to fall to 69.8. This was the highest reading since May 2000.
The current conditions index advanced to -66.2 from -81.3 a month ago. The expected level was -72.0.
“Stalled Brexit talks and rising COVID-19 cases could not dampen the positive mood,” ZEW President Achim Wambach, said.
“However, the still negative outlook for the banking sector reveals fears of a rising number of loan defaults in the coming six months,” Wambach added.
Sentiment concerning the economic development of the Eurozone also improved in September. The corresponding index gained 9.9 points to 73.9 points. Likewise, the indicator for the current economic situation climbed 8.9 points to minus 80.9 points.
The outlook for the Eurozone has improved noticeably, albeit to a lesser extent than for Germany, the survey showed.
A report from Destatis revealed that employment in Germany’s manufacturing sector decreased by 2.9 percent in July from the last year. The number of hours worked declined 8.5 percent annually.
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