Investor confidence in Germany rose to the highest level for 10 months in April as growth of the euro zone's biggest economy continues to gather momentum, a new survey showed.
The ZEW economic research institute's economic expectations index, based on a poll of 320 analysts and institutional investors, rose by 10.7 points to plus 16.5 points in April, its highest level since June 2006.
The increase also beat expectations: analysts had been pencilling in a more modest rise to plus 10 points this month.
The increase marks the fifth consecutive monthly rise in the barometer since the index hit a 13-year low of minus 28.5 points in November.
ZEW President Wolfgang Franz attributed the favourable growth outlook to the improved situation on the labour market, which is providing a boost to household consumption.
'In addition, concerns about the global economic outlook are falling. In the wake of the slowdown in the US, the world economy will grow more moderately, but still robustly,' he said.
The ZEW indicator represents the balance between positive and negative expectations for the economy, the biggest in the eurozone, over the next six months.
If most analysts and institutional investors polled believe the economy will improve, the index shows a plus. If most are expecting a deterioration, the index shows a minus.
