German economic sentiment improved more-than-expected to a four-month high in September, despite trade war fears, survey data from the Centre for European Economic Research, or ZEW, showed Tuesday.
The economic sentiment indicator climbed to -10.6 from -13.7 in August, the Mannheim-based think tank said. Economists had expected a moderate improvement to -13.5. The score was the highest since May.
The current conditions index rose to 76 from 72.6 in August. Economists had expected a lower reading of 72.
“During the survey period, the currency crises in Turkey and Argentina intensified, while German industrial production and incoming orders were surprisingly low in July,” ZEW President Achim Wambach said.
“Despite these unfavorable circumstances, economic expectations for Germany improved slightly.”
“The considerable fears displayed by the survey participants regarding the economic development have diminished somewhat, which may in part be attributable to the new trade agreement between the USA and Mexico,” Wambach added.
The financial market experts’ sentiment concerning the economic development of the Eurozone also improved in August.
The corresponding indicator climbed 3.9 points to minus 7.2 points. At the same time, the indicator for the current economic situation increased slightly by 1.7 points to 31.7 points.
Inflation expectations for the Eurozone showed a considerable decline, with the corresponding indicator falling by 8.7 points to a reading of 24.0 points.