BERLIN, July 15 - The ZEW institute's expectations indicator for the German economy jumped to 41.9 points in July, its seventh consecutive rise, boosted by a stock market rebound and the government's reform plans, data on Tuesday showed. The ZEW said the indicator rose 20.6 points to 41.9, far exceeding the median forecast of analysts polled by for a rise to 25.0. Forecasts ranged from 21.3 to 30.0. ZEW said the reading signalled that Germany was emerging from the economic doldrums and was a sign the economy would pick up at the start of 2004.
"Rising stock prices, the slightly weaker euro and progress in the reform debate contributed to the new-found optimism," said ZEW president Wolfgang Franz in a statement. The index, from the Mannheim-based Centre for European Economic Research (ZEW), is seen as useful indicator of sentiment about prospects for Europe's largest economy as it is based on a survey of around 300 institutional investors and analysts. ZEW's expectations indicator for the euro zone rose by 12.5 points to 50.5 points. ZEW said it polled 311 institutional investors and economists for its July survey. Some economists look to the index as an early indication of likely moves in the more closely-watched Ifo business climate index, due to be released this month on July 28.//