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German ZEW investor sentiment jumps in sign economy still robust
[WARSAW] German investor confidence improved more than economists anticipated in October in a sign that the economy remains robust, according to the ZEW Center for European Economic Research in Mannheim.
Index of investor and analyst expectations, which aims to predict economic developments six months ahead, rose to 6.2 from 0.5 in September Reading is highest since June; median forecast was for increase to 4 Index of current situations rose to 59.5 from 55.1.
The report comes after a string of bumper results from the German economy, with August exports surging the most since 2010 and factory orders growing at the fastest pace in five months. Business sentiment jumped to the highest level in more than two years in September. Even so, the Bundesbank has toned down its outlook, pointing to slower growth in the third quarter, as concerns remain over the consequences of Britain's decision to leave the European Union.
Improved economic sentiment is sign of "relatively robust economic activity," ZEW President Achim Wambach said in a statement.
Mr Wambach said positive impulses from industry, exports shouldn't distract from economic, political risks; banks are currently a burden to outlook. ZEW measure for expectations in the euro area climbed to 12.3 from 5.4