German investor confidence creeps up in May

Germany has strong industrial production and exports as well as low levels of unemployment 

Frankfurt am Main (AFP)

Confidence among German investors inched up in May, a regular survey showed Tuesday, buoyed by optimism for the future of the eurozone following Emmanuel Macron's election to the French presidency.

The ZEW economic institute's headline index measuring economic expectations for the coming months added 1.1 points to reach 20.6, in a marked slowdown a 6.7-point leap in April.

Analysts surveyed by data company Factset had predicted slightly faster growth in confidence, to 21.6 points.

ZEW president Achim Wambach noted that a strong reading for German economic growth in the first quarter had confirmed a widespread good mood in financial markets and business surveys.

"Prospects for the whole eurozone are also gradually improving, further reinforcing the economic environment for German exports," he added.

The institute's separate index measuring expectations for the 19-nation single currency area leapt 8.8 points, to 35.1.

Investors' assessment of the present state of the economy in the eurozone also brightened faster than the same measure for Germany.

"Investors and analysts do not see an end to the current growth party in Germany any time soon," commented economist Carsten Brzeski of ING Diba bank.

"Fading political risks, low inflationary pressure, low interest rates and comfortable stock markets are feeding investors' optimism."

The ZEW institute compiled its index based on a survey of 219 financial players between May 2 and 15.