German investor morale rises for fourth month, ZEW says

German investor morale rose for a fourth consecutive month in August, with the ZEW institute's economic expectations index climbing 7.9 points to 34.2, ZEW said on August 18.

The survey of 185 analysts and institutional investors found that sentiment improved fastest in the automotive, chemicals and machinery sectors. Investors' assessment of the current economic situation rose by 16.2 points, although respondents still judged current conditions negatively.

LBBW bank analyst Elmar Voelker said the improvement in German economic sentiment was continuing and that the assessment of current conditions had shown more progress than expected.

The survey follows other signs of improvement, including a June rise in industrial orders reported by Germany's statistical office. Germany still faces weak demand, US tariffs and strong competition from China in key export markets such as cars and chemicals.

Chancellor Friedrich Merz has promised to borrow and spend hundreds of billions of euros on infrastructure. Voelker said it remains unclear whether the recent positive developments will be enough to secure a lasting recovery.