Financial News: German Investor Sentiment Rebounds Ahead Of Federal Electi

German Investor Sentiment Rebounds Ahead Of Federal Election: ZEW

02/18/2025 - 07:43:00 (RTTNews)

(RTTNews) - German economic confidence logged its strongest improvement in the past two years in February ahead of the federal election as financial experts expect fiscal stimulus from the new government and also foresee better outlook for construction on the back of interest rate cuts, results of the closely watched survey by the think tank ZEW showed on Tuesday.

The ZEW Indicator of Economic Sentiment surged 15.7 points to a seven-month high of 26.0 in February. The reading remained well above forecast of 19.9.

Financial market experts' assessment about the current situation also improved in February. The corresponding index rose slightly by 1.9 points to -88.5.

The rising optimism was probably due to hopes for a new German government capable of action, ZEW President Achim Wambach said.

Moreover, private consumption is expected to gain momentum over the coming six months after a period of absent demand.

The president said the latest interest rate reduction by the European Central Bank in response to sluggish economic activity have contributed to the better outlook for the construction industry.

Last month, the <a href=https://www.rttnews.com/3507772/ecb-to-cut-rates-again-as-lagarde-sees-disinflation-well-on-track.aspx target=_blank >ECB cut its interest rates</a> for a fourth policy session to its lowest level in two years as the disinflation process remain well on track and suggested more easing going forward.

Economic confidence in the euro area also strengthened in February. The corresponding index moved up 6.2 points to 24.2. At the same time, the current situation index climbed 8.5 points to -45.3.

For comments and feedback: contact editorial@rttnews.com

Market News provided by RTTNews

RECENT INTERNATIONAL FINANCIAL NEWS

U.K. Private Sector Activity Growth Slows In February (03 hr(s), 20 min(s), 10 sec(s) ago)
(RTTNews) - The British private sector grew at its slowest pace in two months as services continue ...Full Story»

U.S. Consumer Sentiment Plunges To Lowest Level Since November 2023 (07 hr(s), 50 min(s), 10 sec(s) ago)
(RTTNews) - A report released by the University of Michigan on Friday showed consumer sentiment in ...Full Story»

U.S. Existing Home Sales Pull Back Sharply In January (08 hr(s), 04 min(s), 10 sec(s) ago)
(RTTNews) - Existing home sales pulled back sharply in the month of January, according to a report ...Full Story»

UK Budget Logs Surplus In January (09 hr(s), 45 min(s), 10 sec(s) ago)
(RTTNews) - The UK budget logged a record surplus for the month of January on self-assessed taxes ...Full Story»

Eurozone Private Sector Expands In February (10 hr(s), 23 min(s), 10 sec(s) ago)
(RTTNews) - The euro area private sector managed to grow for the second straight month in February ...Full Story»

Mexico Q4 GDP Growth Eases More Than Estimated (10 hr(s), 51 min(s), 10 sec(s) ago)
(RTTNews) - Mexico's economic growth eased slightly more than initially estimated in the fourt ...Full Story»

Latvia Producer Prices Fall 0.3% (11 hr(s), 10 min(s), 10 sec(s) ago)
(RTTNews) - Latvia's producer prices decreased in January after rising for the first time in e ...Full Story»

Ireland Wholesale Prices Rise 2.1% (11 hr(s), 43 min(s), 10 sec(s) ago)
(RTTNews) - Ireland's wholesale prices increased for the third straight month in January, data ...Full Story»