By Maria Martinez
BERLIN (Reuters) – German investor morale posted its strongest increase in two years in February driven by higher economic expectations ahead of the federal election.
Investor morale improved more than expected, the ZEW economic research institute said on Tuesday, reporting an increase in its economic sentiment index to 26.0 points from 10.3 points in January.
Analysts polled by Reuters had pointed to a reading of 20.0.
“This rising optimism is probably due to hopes for a new German government capable of action,” said ZEW president Achim Wambach.
After a period of absent demand, private consumption can be expected to gain momentum in the next six months, Wambach added.
The assessment of the current economic situation has also improved, although more modestly, rising to minus 88.5 points from minus 90.4.
The scores, in a range from minus 100 to plus 100, are based on a survey of about 350 Germany-based financial analysts at banks, insurers and large industrial companies.
(Reporting by Ludwig Burger and Maria Martinez, Editing by Friederike Heine)
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