German economic outlook improving - Zew

German economic research group Zew is more optimistic about German economic recovery as important business indicators point to positive trends.

The ZEW Indicator of Economic Sentiment stabilised at a high level this month on +72.9 points compared with +73.4 points in December 2003.

Optimism has remained high despite the continuing strength of the euro, industrial production and the increasing volume of imports.

The experts' evaluation of Germany's economic situation was more optimistic with 78.2% compared to 85% of those interviewed believing that the current economic situation in Germany was bad.

"In order to ensure that this positive development continues anything that might permanently affect price competitiveness should be avoided and the reform process should be rapidly implemented," said ZEW president Prof. Wolfgang Franz.

Economic sentiment for the euro-zone improved in January, the Zew reported also.

The indicator gained +1.9% compared with last month's figures and now stands at +80.1 points. 59.9% of those interviewed regarded the current economic situation in the eurozone as poor.