German investor confidence jumped more than economists forecast in February to the highest in almost three years, adding to signs that Europe’s largest economy is rebounding from its slump.
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, climbed to 48.2 from 31.5 in January. That’s the highest since April 2010. Economists forecast a gain to 35, according to the median of 38 estimates in a recent survey.
The Bundesbank said yesterday it expects Germany to return to growth this quarter as confidence improves and the global economy gains strength. Gross domestic product fell 0.6 percent in the final quarter of 2012, more than economists forecast, as exports declined and companies postponed investment amid Europe’s sovereign debt crisis.
ZEW’s gauge of the current situation fell to 5.2 from 7.1. Economists had forecast a gain to 9. The euro rose after the report before retracing to trade at $1.3336 U.S. at noon in Frankfurt, down 0.1 percent from yesterday. European stocks climbed for the first time in four days, with the Stoxx Europe 600 Index up 0.6 percent to 288.51.
The Bundesbank in December predicted German growth will slow to 0.4% this year from 7% last year. That’s still better than the 0.3% contraction forecast by the European Central Bank for the euro region as a whole.
European Union car sales fell to the lowest level for a January in at least 23 years, the Brussels-based European Automobile Manufacturers’ Association said today.
Registrations dropped 8.7% to 885,159 vehicles last month from 969,219 cars a year earlier, ACEA said. The figure was the lowest start to the year since the group began tracking sales in 1990.
