Investor sentiment in Germany unexpectedly improved in November on expectations that price pressures will ease early next year and that growth will accelerate in Europe’s biggest economy, a survey showed on Tuesday (9).
Economic research institute ZEW said its economic sentiment index rose to 31.7 from 22.3 points in October. Reuters poll projected drop to 20.0.
“Financial market experts are more optimistic about the next six months,” ZEW President Achim Wambach said in a statement.
The drop in the current conditions sub-index to 12.5 from 21.6 – against an expectation of 18.0 – showed that investors expect supply bottlenecks and inflationary pressures to hold the economy back in the current quarter, he said.
“For the first quarter of 2022, they expect growth to accelerate again and inflation to fall in both Germany and the eurozone,” added Wambach.
Supply bottlenecks have weighed on industrial production in Germany. Exports fell for the second month in a row in September.
Reference: CNN Brasil