The ZEW (Zentrum für Europäische Wirtschaftsforschung GmbH or the Center for European Economic Research) Indicator of Economic Sentiment for Germany increased in August. From 36.3 points in July, the August data revealed a rise of 5.7 points to 42.0 points. The August figure is the highest the country has received since March 2013. The ZEW figures also beat the forecast in a poll conducted by Reuters, of which the news site predicted a rise of only 40.0 points.
Reuters reported the numbers suggest a gradual improvement in the German economy. Germany started weakly in 2013 after suffering a contraction in 2012. Thomas Gitzel of VP Bank believed the ZEW data proved that a turning point would happen in the coming weeks. He added, "The latest early indicators and hard facts - such as the big gain in industry output in June - make the case for an improvement after a long, dry spell."
According to ZEW, the rise in the economic sentiment could have been affected by "the strong increase of economic expectations for the Eurozone." It may also have been fueled by the signs that recession is ending in the region. In Germany, strong domestic demand also supported the optimistic sentiment.
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