European Economy: Bright euro-zone outlook boosts German sentiment

German analyst and investor sentiment improved more than expected this month on signs that the recession in the euro zone is bottoming out, a survey showed yesterday, underscoring a brightening outlook for Europe's largest economy.

The ZEW think tank's monthly poll of economic sentiment stood at 52.8, up from 49.6 last month and its highest level since April 2010.

"For Germany, it's relatively good news regarding the business cycle," said ZEW economist Marcus Kappler. "Early indicators at the moment are positive especially for the euro zone. Recession in the euro zone is bottoming out."

ZEW said sentiment would have risen even more were it not for a fiscal crisis in the United States.
Economists said the positive ZEW data fit into the overall picture of the German economy gradually improving over the year.

It steamed ahead during the early years of the euro-zone crisis before weakening last year, but economic growth bounced in the second quarter of this year. Economists generally expect the third quarter saw slower but solid growth.

Read more: Bright euro-zone outlook boosts German sentiment | South China Morning Post

Euro zone morale reaches two-year high in September but mood in the Netherlands worsened by 0.9 points - by Martin Santa

Optimism in the euro zone's economy brightened for the fifth month running and hit a 2-year high in September, driven by improving confidence across all sectors and confirming that a recovery is underway.

The European Commission said on Friday the 17-nation bloc's morale rose faster than expected to 96.9 from 95.3 in August, the best reading since August 2011.

In the wider European Union, confidence was up by 2.4 points to 100.6 points, taking the indicator above its long-term average for the first time since July 2011.

In the euro zone, the positive trend was particularly strong in three out of the bloc's five largest economies, with Spain and Italy rising by 2.5 points and France up by 1.6 points.

Sentiment in Germany, Europe's biggest economy, was broadly unchanged, while the mood in the Netherlands worsened by 0.9 points in September.

Across the bloc, employment plans were revised upwards in industry, services, retail trade and construction, the European Commission said.

Almere-Digest