German investor confidence was stable in March, as experts expected the economy to slowly recover in the coming months, the ZEW economic research institute said today.
'German business activity has moved from the intensive care unit to the rehab. But it is still far from full recovery,' ZEW president Wolfgang Franz said.
The financial sector indicator dipped to 44.5 points, the lowest level since July as a brighter outlook the industrial front appeared to offset concern over the Greek debt crisis on equity, bond and foreign exchange markets.
The barometer stood at 45.1 points in February and analysts had expected it to come in at 43 points this month.
'Good news published in January with respect to industrial production and incoming orders in Germany seem to have reassured the financial market experts in this assessment,' the ZEW statement said.
German industrial output recorded a modest rise of 0.6% in January despite unusually harsh winter weather, while industrial orders posted a sharp rebound, gaining 4.3% from December in the biggest jump in five years.
'According to the financial market experts, the export-oriented industries - mechanical engineering, chemicals and steel - will drive economic growth,' ZEW said a day after Germany was singled out by euro zone partners for its strong trade surplus and relatively modest domestic consumption.
In its measure of the current situation, ZEW said an assessment by 289 investors edged higher in March to -51.9 points, the tenth rise in a row and the highest level since November 2008. Analysts had expected that figure to improve to -51.5 points.
Meanwhile, the main indicator remained well above its historical average of 27.2 points.
