Posted By Global Banking and Finance Review
Posted on May 13, 2025
By Maria Martinez
BERLIN (Reuters) -German investor morale rose more than expected in May, recovering from its sharp decline the previous month, the ZEW economic research institute said on Tuesday.
The economic sentiment index rose to 25.2 points from -14.0 points in April. Analysts polled by Reuters had pointed to a reading of 11.9.
"With a new government in place, some progress in the tariff disputes and a stabilising inflation rate, optimism has increased," ZEW President Achim Wambach said.
The rebound compensates for some of the losses in April, when German investor morale posted its strongest decline since Russia invaded Ukraine in 2022 due to uncertainty unleashed by U.S. tariffs.
The indicator for assessments of the current economic situation fell in May to -82.0 from -81.2 points.
The score, in a range from minus 100 to plus 100, is based on a survey of about 350 Germany-based financial analysts at banks, insurers and large industrial companies.
(Additional reporting by Friederike Heine; Editing by Rachel More)