(Updated with details of index components, commentary)
Investor morale in Germany has improved since the start of December amid growing expectations of a medium-term rate cut from the European Central Bank (ECB), shows the monthly survey published on Tuesday by the ZEW Institute for Economic Studies.
Its index rose this month to 12.8 points, compared to 9.8 in November, while the consensus of analysts polled by Reuters forecast a figure of 8.8.
The component measuring the current economic situation also improved, rising from -79.8 in November to -77.1.
“Despite the current budgetary crisis, the assessment of the situation and the economic outlook for Germany have again improved slightly,” commented ZEW President Achim Wambach.
“This is because the share of respondents who expect an ECB interest rate cut in the medium term has doubled,” he added.
(Reporting Miranda Murray; French version Claude Chendjou, edited by Kate Entringer and Blandine Hénault)