Zew records German economic sentiment at annual high

A key indicator for German economic sentiment has increased again in November to reach an annual high.

The Zew Indicator rose to +67.2 points compared to +60.3 points in October.

A surprisingly strong increase in new orders in September boosted optimism of the analysts interviewed by the ZEW.

Recent stock market rallies and a weaker Euro may also have contributed to the new optimism.

According to ZEW President, Prof. Wolfgang Franz: "This is good news. Now it is important that economic policy lives up to the increased confidence.

"For that reason the German Council of Economic Experts will present its proposals for discussion tomorrow," he added.

However, a general feeling of insecurity due to pending job market, tax and social reforms was still 'too strong', according to the Zew.

Economic sentiment for the euro-zone also improved in November. The indicator gained +5.3 percent compared with last month's figures and now stands at +72.1 points. In total, economic sentiment for the euro-zone continues to be slightly more optimistic than for Germany.

308 analysts and institutional investors participated in this month's ZEW Financial Markets Survey which is conducted on a monthly basis by the Centre for European Economic Research (ZEW).

The participants were asked about their medium-range expectations concerning economic activity and capital markets.

The ZEW Indicator of Economic Sentiment shows the balance between positive and negative expectations regarding future economic activity in Germany within a six month timeframe.