The mood among German investors perked up more than expected in August, according to the latest sentiment survey from the ZEW economic research centre.
The ZEW survey of investor sentiment rose from 59.9 points in July to 71.5 in August, exceeding predictions, as Europe’s largest economy starts to emerge from the economic fallout of the pandemic.
“Hopes for a speedy economic recovery have continued to grow, but the assessment of the situation is improving only slowly,” said ZEW president Achim Wambach in a statement.
Wambach notes that while a general recovery is expected across all sectors of the economy, the “very poor earnings expectations for the banking sector and insurers regarding the coming six months give cause for concern.”
While finance experts may be looking ahead with more positivity, their assessment of the current situation remains downbeat: the ZEW index fell to -81.3 points, from -80.9 in July.
ZEW found that investor sentiment towards the recovery of the eurozone as a whole had improved too, climbing 4.4 points from July to 64 points this month.
READ MORE: German manufacturing sector rebounds in July
The German economy contracted by just over 10% in the second quarter, and GDP is forecast to contract by 6.3% overall in 2020.
However, various data show signs of recovery for the export-dependent German economy. Exports increased for the second month in a row in June, posting a 14.9% rise from the month before, while in July, the country’s crucial manufacturing sector experienced a sharp growth in new orders.