Germany's economic sentiment improves better than market forecast

ANKARA

Germany's economic sentiment hiked much above the market estimate in February, according to data released by an economic research institute on Tuesday.

The Leibniz Centre for European Economic Research's (ZEW) indicator of economic sentiment for Germany jumped 11.2 points from the previous month, reaching a 12-month high of 28.1 points in February.

It was the fifth consecutive rise and the second month with a significantly positive outcome.

An index of current conditions also continued to recover in Europe's largest economy to minus 45.1 points in February, up 13.5 points from January.

"Meanwhile a large fraction of the survey participants expects the economic situation to improve in six months' time. However, the current situation is still assessed as relatively unfavorable," ZEW head Achim Wambach said in a statement.

Expectations for long-term interest rates are also rising and the banking sector indicator has reached its highest level since 2004, he added.

Eurozone economic sentiment up

The ZEW indicator of economic sentiment for eurozone also surged 13 points month-on-month to 29.7 points in February.

Assessment of the current situation in the single currency zone went up by 13.2 to minus 41.6 during the same period.