Germany: Improving Economy, Idea of Fast Turnaround Fading

Posted on Tuesday, November 10, 2009

Some insight into Germany, European's largest economy. Similar to the U.S. the current situation is rather ugly, but improving, while optimism for the future is stronger, but expectations for a fast rebound are fading.

Bloomberg details:

German investor confidence declined more than economists forecast in November as the prospect of expiring government stimulus programs and rising unemployment tempered expectations for economic growth.

The ZEW Center for European Economic Research in Mannheim said its index of investor and analyst expectations, which aims to predict developments six months ahead, dropped to 51.1 from 56 in October. The median forecast in a Bloomberg News survey of 39 economists was for a decline to 55.

ZEW's gauge of the current economic situation rose to minus 65.6 from minus 72.2 in October. The DAX index and the euro fell after the report and the yield on German 10-year government bonds slipped 3 basis to 3.27 percent.