German Investor Confidence Rebounds as Economy Skirts Recession
2014-11-18 10:00:32.993 GMT
By Alessandro Speciale
Nov. 18 (Bloomberg) -- German investor confidence rose for
the first time in 11 months after Europe’s largest economy
avoided relapsing into a recession.
The ZEW Center for European Economic Research in Mannheim
said its index of investor and analyst expectations, which aims
to predict economic developments six months in advance,
increased to 11.5 in November from minus 3.6 in October.
Economists had forecast a rebound to 0.5, according to the
median of 37 estimates in a Bloomberg News survey.
Germany’s gross domestic product expanded 0.1 percent in
the third quarter, after contracting in the three months through
June, to join a gradual euro-area revival that extended from
France to Greece. The European Central Bank has implemented
unprecedented stimulus measures to bolster the regional recovery
and has pledged more if needed.
“The recent GDP data showed the euro zone continues with a
very slow recovery,” said Alexander Koch, an economist at
Raiffeisen Schweiz in Zurich. “The fundamentals do not argue
for a pick up in the speed of economic activity.”
GDP in the 18-nation euro area increased 0.2 percent in the
third quarter, more than analysts forecast. Greece recorded
quarterly growth of 0.7 percent, while France expanded 0.3
percent.
Germany lagged behind the region as a whole. Third-quarter
growth was driven primarily by private consumption as equipment
investment dropped, construction fell and inventories
contracted. The government cut its growth forecasts last month,
and the Bundesbank said yesterday that the economy will lack
momentum until at least the end of this year.
For Related News and Information:
Draghi Says ECB Measures Could Include Buying Government Bonds
German-French Rebound Helps Euro-Area Keep Expanding: Economy
Frankfurt Open for Yuan Clearing amid Europe Liquidity Gains
Top Economy Stories: TECO <GO>
Sovereign credit ratings: CSDR <GO>
European economic statistics: EUST <GO>
--With assistance from Kristian Siedenburg in Vienna and Stefan
Riecher, Stuart Metzler and Angela Cullen in Frankfurt.
To contact the reporter on this story:
Alessandro Speciale in Frankfurt at +49-69-9204-1201 or
aspeciale@bloomberg.net
To contact the editors responsible for this story:
Fergal O’Brien at +44-20-7330-7152 or
fobrien@bloomberg.net
Paul Gordon, Zoe Schneeweiss
2014-11-18 10:00:32.993 GMT
By Alessandro Speciale
Nov. 18 (Bloomberg) -- German investor confidence rose for
the first time in 11 months after Europe’s largest economy
avoided relapsing into a recession.
The ZEW Center for European Economic Research in Mannheim
said its index of investor and analyst expectations, which aims
to predict economic developments six months in advance,
increased to 11.5 in November from minus 3.6 in October.
Economists had forecast a rebound to 0.5, according to the
median of 37 estimates in a Bloomberg News survey.
Germany’s gross domestic product expanded 0.1 percent in
the third quarter, after contracting in the three months through
June, to join a gradual euro-area revival that extended from
France to Greece. The European Central Bank has implemented
unprecedented stimulus measures to bolster the regional recovery
and has pledged more if needed.
“The recent GDP data showed the euro zone continues with a
very slow recovery,” said Alexander Koch, an economist at
Raiffeisen Schweiz in Zurich. “The fundamentals do not argue
for a pick up in the speed of economic activity.”
GDP in the 18-nation euro area increased 0.2 percent in the
third quarter, more than analysts forecast. Greece recorded
quarterly growth of 0.7 percent, while France expanded 0.3
percent.
Germany lagged behind the region as a whole. Third-quarter
growth was driven primarily by private consumption as equipment
investment dropped, construction fell and inventories
contracted. The government cut its growth forecasts last month,
and the Bundesbank said yesterday that the economy will lack
momentum until at least the end of this year.
For Related News and Information:
Draghi Says ECB Measures Could Include Buying Government Bonds
German-French Rebound Helps Euro-Area Keep Expanding: Economy
Frankfurt Open for Yuan Clearing amid Europe Liquidity Gains
Top Economy Stories: TECO <GO>
Sovereign credit ratings: CSDR <GO>
European economic statistics: EUST <GO>
--With assistance from Kristian Siedenburg in Vienna and Stefan
Riecher, Stuart Metzler and Angela Cullen in Frankfurt.
To contact the reporter on this story:
Alessandro Speciale in Frankfurt at +49-69-9204-1201 or
aspeciale@bloomberg.net
To contact the editors responsible for this story:
Fergal O’Brien at +44-20-7330-7152 or
fobrien@bloomberg.net
Paul Gordon, Zoe Schneeweiss