Confidence in an economic recovery in Germany hit a 16-month high in November, according to a survey by the ZEW research institute. The ZEW said its German economic expectations index of 300 analysts rose 6.9 points in November to plus 67.2. This was the third consecutive gain for the index, which came in higher than economists' forecasts for a rise to plus 65.0. The institute said the surprisingly strong increase in new orders in September boosted optimism and the recent stock market rally and a weaker euro may also have contributed to the new optimism.
However, 88pc of the experts surveyed by the institute said that current economic activity is still weak and has not yet been able to benefit from improved economic sentiment. The economic sentiment for the eurozone also improved in November. The indicator gained 5.3pc compared with last month's figures and now stands at plus 72.1 points. In total, economic sentiment for the eurozone continues to be slightly more optimistic than for Germany. //www.fxcentre.com