BERLIN (Reuters) – German investor morale improved more than expected in March on expectations of a cut in ECB interest rates and a stronger China, the ZEW economic research institute said on Tuesday.
“More than 80% of those surveyed anticipate that the ECB will cut interest rates in the next six months,” said ZEW President Achim Wambach, adding that this could explain the more optimistic outlook for the country’s construction industry.
“The German export sector benefits from the increased economic expectations for China as well as the expected depreciation of the dollar against the euro,” he added.
The ZEW institute reported a rise in its economic sentiment index to 31.7 points from 19.9 points in February, beating a poll of analysts by Reuters that pointed to a March reading of 20.5.
By comparison, the assessment of the current situation improved only slightly, rising to -80.5 from -81.7 last month.
(Reporting by Miranda Murray and Andrey Sychev, Editing by Rachel More)
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