German business optimism up on strong domestic economy

AP News
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Posted: Nov 17, 2015 6:06 AM

FRANKFURT, Germany (AP) — A key measure of German economic optimism rose more than expected thanks to strong domestic demand from consumers — and showed little impact from the terror attacks in Paris.

The ZEW index rose to 10.4 points in November from 1.9 points the month before. Market analysts were expecting 6.0 points.

It was the first increase after seven consecutive monthly declines. The survey was conducted from Nov. 2 through Monday, and so didn't fully reflect the impact of the Friday night Paris attacks that left 129 people dead. The ZEW institute said in a statement, however, that "economic pessimism appears not to have increased after the terror attacks in Paris."

Clemens Fuest, head of the ZEW, or Centre for European Economic Research, said Tuesday that "the outlook for the German economy is brightening again towards the end of the year." Germany's economy had slowed in the third quarter, when it grew a modest 0.3 percent compared with the quarter before.

Fuest said strong consumer spending and a lower euro, which helps exporters, were contributing to a rise in optimism.

The institute surveyed 225 analysts in the financial services sector.