German investor confidence soars to two-year high

German investor morale surged more than anticipated in May, reaching its strongest level since the outbreak of the Ukrainian war in February 2022, Reuters reported on Tuesday, citing recent data by the ZEW economic research institute.

The ZEW economic sentiment index jumped to 47.1 points from 42.9 in April, exceeding analyst predictions of 46.0.

Fueled by a stronger-than-expected first quarter economic performance, both the current economic situation and future expectations have brightened considerably, stated ZEW president Achim Wambach.

The assessment of Germany’s current economic climate also improved, rising from minus 79.2 to minus 72.3 points. Wambach attributed this growing optimism to a more positive outlook on the eurozone overall and China, a vital export market.

The surge in confidence is particularly evident in a sharp rise in expectations for domestic consumption, followed by the construction and machinery sectors, Wambach elaborated.