BERLIN - Investor sentiment in Germany rose by far more than expected in February on expectations consumption will take off in the coming six months, the ZEW economic research institute said on Tuesday, buoying the outlook for Europe's largest economy.
The ZEW said its survey of investors' economic sentiment showed a rise to 71.2 points from 61.8 the previous month. A Reuters poll had pointed to a fall to 59.6, and the February reading surpassed even the highest forecast, of 68.0.
"The financial market experts are optimistic about the future. They are confident that the German economy will be back on the growth track within the next six months," ZEW President Achim Wambach said in a statement.
"Consumption and retail trade in particular are expected to recover significantly, accompanied by higher inflation expectations," he added.
A separate gauge of current conditions eased to -67.2 from -66.4 the previous month. That compared with a consensus forecast of -67.0 points.
(Writing by Paul Carrel Editing by Caroline Copley) ((paul.carrel@thomsonreuters.com))
