German Economic Sentiment Hits 6-Month High

(RTTNews) - German economic confidence rose to a six-month high in August driven by good company results and robust exports, survey results from the Mannheim-based Centre for European Economic Research, or ZEW, showed Tuesday.

The ZEW indicator of economic sentiment advanced to 34.2 in August from 26.3 in July. This was the highest score since February and also better than forecast of 30.1.

The assessment of the current situation was more positive in August with the indicator rising 16.5 points to -61.1. The expected reading was -68.8.

"The positive trend in expectations further consolidates in August, likely due to the good quarterly results and the recent high level in exports," ZEW President Achim Wambach said.

Wambach noted that the economy continued to benefit from the federal government's infrastructure programmes although the record low water levels on the Rhine River present an additional acute risk affecting economic activity.

All industries report brighter expectations, especially the vehicle industry where prospects improved by 22.2 points but the balance was still in negative territory.

The chemical and pharmaceutical industries as well as the mechanical engineering and metal industries also recorded strong growth. Further, expectations regarding private consumption improved again in August, to -6.2 points. The construction industry improved 1.4 points to 2.1 points, the survey revealed.

Economic confidence for the euro area also strengthened in August. The corresponding index climbed 8 points to 31.4. Although the assessment of current situation improved strongly by 16.2 points to -21.5, the index remained in negative territory.