(MENAFN– ecpulse) German investor confidence resumed its advance for a fourth straight month in November, reaching its highest level since October 2009, to give hopes recovery in Europe’s biggest economy may gain momentum again in the last quarter.
The index of investor and analyst expectations climbed to 54.6 in November from 52.8 in October, higher than median estimate of 54.0, the ZEW Center for European Economic Research in Mannheim said on Tuesday.
"Economic expectations for Germany have been hovering at a high level for months. The slightly improved economic outlook for the Eurozone might have contributed to this development", ZEW President Prof. Dr. Clemens Fuest said.
The current situation gauge slipped to 28.7 from a prior of 29.7, compared to forecast of 31.0.
Meanwhile, there are concerns that recovery may lose momentum after a report released last week showed that German growth pace eased in the quarter through September to 0.3 percent from 0.7 percent in the previous quarter.
“It seems economic output in Germany increased in the summer quarter of 2013, albeit not to the same extent as in the second quarter, as growth in the second quarter was buoyed by “catch-up effects,” the Bundesbank said in its monthly report published in October.
Business confidence unexpectedly plunged for the first time in six months in October to 107.4, yet data due on Friday is estimated to show a rise to 107.7 this month.
The European Commission now sees an economic growth of 0.5 percent this year and 1.7 percent in 2014.
In the euro area, ZEW survey (expectations) rose to 60.2 from 59.1.
ECB President Mario Draghi slashed borrowing cost last week to a record low of 0.25 percent to prevent further price deceleration after CPI inflation dropped to 0.7 percent.
“Our monetary-policy stance will remain accommodative for as long as necessary,” Draghi said.
He also said the ECB will continue to provide European lenders with unlimited loans until mid-2015, a year longer than before.
As of 10:05 GMT, the euro traded around 1.3507 versus U.S. dollar after falling from a high of 1.3541.
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