German investor morale sees surprise rise in October – ZEW

German investor sentiment rose slightly in October, even as the current economic situation was assessed as significantly worse than the previous month, leaving little room for optimism.

The ZEW economic research institute said on Tuesday its economic sentiment index grew slightly in October, to -59.2, from -61.9 in September, beating a forecast by analysts polled by Reuters of a reading of -65.7.

In contrast, the institute’s current conditions index fell by 11.7 points in October to a reading of -72.2.

“The probability that real gross domestic product will decline in the course of the next six months has also increased considerably,” said ZEW President Achim Wambach, adding: “Overall, the economic outlook has deteriorated again.”

ZEW’s indicators for euro zone sentiment and assessment of the current conditions mirrored Germany’s, with sentiment up slightly in October and the situation indicator tumbling.