-Achim Wambach, ZEW
German Business Sentiment rose to its highest level in seven months in January, though less than expected. The Centre for European Economic Research/ZEW reported on Thursday that its Economic Sentiment Indicator for Germany gained 2.8 points to 16.6 in the reported month, falling behind analysts' expectations of monthly improvement to 18.4. However, the latest score was the strongest since June, when the Indicator came in at 19.2 points. Furthermore, the Current Conditions Index increased from 63.5 to 77.3 points last month, while economists anticipated a slight rise to 65 points. That was the highest reading since July 2011. The Current Assessment Index advanced considerably, climbing 13.8 to 77.3 points. The Mannheim-based ZEW institute also reported the Euro zone's ZEW Economic Indicator, which tracks sentiment for the next six months, grew to 23.2 in January, compared to the preceding month's 18.1, whereas market analysts expected a sharper increase to 24.1. Meanwhile, the Euro zone's Current Condition Index gained 7.9 to -0.4 in the reported month.
Earlier this week, Destatis released its better than expected report, which showed Germany's economy expanded 1.9% in 2016, while output climbed 0.4% and exports grew at the fastest pace in four years.
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