2019.11.1211:04:00UTC+00German ZEW Economic Confidence Strengthens Sharply

German economic confidence strengthened sharply to a six-month high in November on rising hopes of an improvement in the global economic environment, survey data from the ZEW - Leibniz Centre for European Economic Research in Mannheim showed on Tuesday.

The ZEW Indicator of Economic Sentiment rose more-than-expected to -2.1 in November from -22.8 in the previous month. A similar higher reading was last seen in May. The expected reading was -13.0.

The indicator measuring the current situation, rose slightly to -24.7 in November from -25.3 in the previous month.

"There is growing hope that the international economic policy environment will improve in the near future, which explains the sharp rise in the economic sentiment," ZEW President Achim Wambach said.

"Punitive tariffs on car imports from the EU to the United States are also less likely than the projections a few weeks ago," Wambach added.

"An agreement in the trade conflict between the USA and China is appearing more likely too."

Official and survey data released recently suggested that the largest euro area economy slipped into a mild recession in the third quarter. The statistical office is set to issue GDP data on November 14.

In the euro area, the economic confidence index climbed sharply by 22.5 points from the previous month to -1 in November, the ZEW survey showed. Likewise, the indicator for the current economic situation rose significantly by 6.8 points to -19.6 points.