- Johannes Gareis, euro-zone economist at Natixis
Confidence among German investors soared to the highest level since April 2010 in February, adding to signs that Europe's largest economy is rebounding from its slump, according to the ZEW Center for European Economic Research. A gauge of investor and analyst expectations, which aims to predict economic developments six months in advance, jumped to 48.2 this month, up from 31.5 in the prior month. The reading came well above analysts' expectations, who called for a 35 reading. On Monday, the Bundesbank said it expects Germany to return to growth in the first quarter of 2013 as confidence improves and the global economy gains strength. Europe's largest economy shrank by 0.6% in the final three months of 2012.
"Despite the upbeat ZEW reading, we remain cautious with regard to Germany's prospects as there are many challenges to overcome in 2013," said Johannes Gareis, euro-zone economist at Natixis in Frankfurt.
"The financial market experts have made their peace with the weak fourth quarter of 2012. In their opinion the German economy faces less headwinds from the euro crisis than throughout the last months", ZEW President Professor Wolfgang Franz remarked after the results.
© Dukascopy Bank SA