Investor confidence stabilized in September in Germany, registering a slight rise for the fifth consecutive month, driven by "cautious optimism regarding economic recovery." The investor confidence index of the Centre for European Economic Research (ZEW) improved by 0.5 points, reaching 34.7 points. This indicator reflects the expectations of 196 analysts and institutional investors on the economic situation and capital market developments, in a survey conducted by ZEW between September 7 and 14. The assessment of the current situation in Germany rose 14 points to -47.1 points compared to the previous month.
Investor confidence in Germany fell in March and April after the start of the war in Iran, with the indicator at 58.3 points in February, before the conflict. ZEW President Achim Wambach stated that economic recovery is driven by fiscal measures and supported by additional export stimuli, but warned that risks are considerable. Expensive energy, due to the war in Iran, and greater uncertainty due to hybrid attacks are putting pressure on the economy. Steel and metals production, as well as the automotive industry, remain in negative territory, although ZEW highlighted the improvement in investor confidence in the banking sector.
Regarding the euro zone, experts' expectations on financial markets regarding the economic outlook fell by 5.6 points in September, to 25.8 points. The assessment of the current situation in the euro zone rose by 7.6 points in September, to -13.9 points, compared to the previous month.
