BERLIN, Aug 18 (Reuters) – German investor morale rose more than expected to 34.2 points in August, the ZEW economic research institute said on Tuesday, as positive quarterly results and export orders helped to offset the effect of high energy prices and transport disruptions.
Analysts polled by Reuters had expected the reading to rise to 30.0 points from 26.3 points a month earlier.
“The positive trend in expectations further consolidates in August, likely due to the good quarterly results and the recent high level in exports,” said ZEW President Achim Wambach.
A reading by ZEW on views of the current economic situation improved to -61.1 points from -77.6 in July, also better than expected.
The results were based on survey responses from 185 analysts and institutional investors from August 10 to 17.
Wambach said the economy had benefited from federal government spending on infrastructure, although he said that record low water levels on the Rhine River were a risk to economic activity.
German chemical producers, utilities, steelmakers and agricultural traders have warned of higher costs and curbed production as a result of the record low levels.
Ulrich Wortberg, an economist at Helaba Research, said ZEW’s survey reflected a continued recovery in sentiment.
“Today’s figures tend to support expectations of an interest rate rise by the European Central Bank,” he added.
Higher oil and natural gas prices as a result of the Iran war have slowed a long-awaited recovery in Europe’s largest economy. The German economy ministry cut its growth forecasts for 2026 and 2027 in April.
However, it said last week that positive momentum was emerging and overseas buyers had placed orders with energy-intensive manufacturers in Germany, which gained an edge as Asian rivals were even harder hit by costs linked to war in the Middle East.
(Writing by Ludwig BurgerEditing by Friederike Heine, Linda Pasquini and Barbara Lewis)
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