Germany’s Economic Outlook Improves

Investors are more upbeat about Germany’s economic outlook as fears about a full-blown trade war with the United States are fading, the ZEW research institute said on Tuesday after its survey showed German investor morale improved in September, Reuters reported. “During the survey period, the currency crises in Turkey and Argentina intensified, while German industrial production and incoming orders were surprisingly low in July,” ZEW President Achim Wambach said. “Despite these unfavorable circumstances, economic expectations for Germany improved slightly,” Wambach said, adding that fears regarding economic development had diminished following a trade deal between the United States and Mexico. The German ZEW headline numbers for August showed that the economic sentiment numbers dropped to -10.6 versus -14.0 expectations and -13.7 last. While the sub-index current conditions figure rose to 76.0 versus 72.0 expected and 72.6 booked previously, surprising markets to the upside, FXStreet reported. These numbers are derived via a survey of about 300 German institutional investors and analysts, conducted by ZEW, which asks respondents to rate the relative 6-month economic outlook for Germany.