German Economic Sentiment Rises In October

(RTTNews) - Germany economic sentiment rose moderately in October as investors still hope for an economic upturn, a monthly survey conducted by the think tank ZEW showed Tuesday. The economic confidence index rose to 39.3 in October from 37.3 in the previous month, though it fell short of the forecast of 41.2.

However, assessment of the current situation continued to follow a negative trend. The corresponding index dropped unexpectedly to -80.0 from -76.4 in September. The index was forecast to improve to -75.0.

"Experts are still hoping for an upturn in the medium term," ZEW President Achim Wambach said.

"Despite persistent global uncertainties and the lack of clarity regarding the implementation of the state investment programme, the ZEW indicator sees a slight increase in October," Wambach added.

The survey showed that expectations for the export-intensive sectors improved markedly in some sectors after the recent slump in exports to China.

Meanwhile, economic confidence in the euro area logged a moderate decline in October driven by the budget dispute in France.

The economic sentiment index fell to 22.7 in October from 26.1 in the previous month. The assessment of the current economic situation was also characterized by a similar deterioration. The current conditions index dropped three points to -31.8.