* ZEW's economic sentiment index rises to 6.2 points
* Better than Reuters consensus forecast of 4.3 points
* ZEW head says survey shows "robust economic activity"
(Adds analyst, background)
By Michael Nienaber
BERLIN, Oct 11 The mood among German investors
and analysts improved more than expected in October, a survey
showed on Tuesday, suggesting traders are more upbeat about the
growth prospects of Europe's biggest economy for the coming
The surprisingly strong data further eased concerns that the
German economy could be heading towards a sharp slowdown in the
second half of the year, after industrial orders and factory
output for August came in far better than expected.
"If you look at German economic news, only two words are
needed to summarise them: Everything rises," VP Bank economist
Thomas Gitzel said, adding that German growth was likely to
surprise on the upside in the second half.
Mannheim-based ZEW said its measure of investors' assessment
of the economy's current conditions jumped to 59.5 points from
55.1 in September. This was stronger than the Reuters consensus
forecast which predicted a reading of 55.5.
A separate monthly survey of economic sentiment showed a
rise in the index to 6.2 points in October after an unchanged
reading of 0.5 points the previous month. This was also better
than the Reuters consensus forecast for a reading of 4.3.
"The improved economic sentiment is a sign of a relatively
robust economic activity in Germany", ZEW President Achim
Wambach said in a statement.
"However, positive impulses from industry and exports should
not distract from existing political risks," Wambach added. "In
particular, the risks concerning the German banking sector are
currently a burden to the economic outlook."
Deutsche Bank, Germany's biggest lender, is
grappling with a confidence crisis following U.S. authorities'
demands for up to $14 billion to settle allegations it mis-sold
The German economy, which has weathered several external
shocks, including Britain's decision to leave the European
Union, will grow slightly faster than originally expected this
year due to higher state spending on migrants and soaring
The government last week lifted its 2016 growth forecast to
1.8 percent from 1.7 percent previously, which would be the
strongest expansion rate in half a decade. Leading economic
institutes are even predicting a growth rate of 1.9 percent.
For 2017, the government expects a slowdown in growth to 1.4
percent due to sluggish foreign demand. But adjusted for the
number of work days, the cooling is expected to be less severe
with a predicted growth rate of 1.6 percent in 2017.
The ZEW index was based on a survey of 213 analysts and
investors conducted between Sept. 26 and October 10.
(Reporting by Michael Nienaber; Editing by Dominic Evans)