Financial market experts' sentiment about Germany's economic growth improved more than expected in September but continues to be in negative territory, according to German economic research institute ZEW.
The ZEW indicator of economic sentiment for Germany improved by 3.1 points from August to negative 10.6 points, higher than Econoday's consensus estimate of negative 12.7 but well below the long-term average of 22.9 points.
The assessment of the country's current economic situation increased by 3.4 points to 76.0, compared to expectations of a decrease to 72.0.
Economic expectations improved despite unexpected decreases in industrial production and new manufacturing orders in July and the intensification of the currency crises in Turkey and Argentina, ZEW President Achim Wambach said.
"The considerable fears displayed by the survey participants regarding the economic development have diminished somewhat, which may in part be attributable to the new trade agreement between the USA and Mexico," Wambach said.
Experts' sentiment regarding economic growth in the eurozone improved by 3.9 points to negative 7.2 points. The current economic situation indicator increased by 1.7 points to 31.7 points.
The indicators for inflation expectations for Germany and the eurozone decreased by 4.2 points and 8.7 points, respectively.