The Zew-index, which measures future confidence among German investors and analysts, rose unexpectedly to 52.7 in July. This can be compared to 47.5 in June.
Analysts had expected an increase in the Zew-index in July, but only to 50.4, according to the news agency Bloomberg.
The mood is still resilient despite the concern about how the EU's and the US's customs negotiations will end and the new round of customs threats from US President Donald Trump, writes Alexander Valentin, senior economist at Oxford Economics, in a comment.
Regarding Zew's sub-index for the view of the situation right now, the index rose to minus 59.5. This can be compared to minus 72.0 in June and expectations among analysts of minus 66.0 in July.
German industry also contributed to lifting the euro zone's industrial production by 1.7 percent in May, notes Valentin. This means that it may be relevant to raise the GDP forecast for Germany in the second quarter, according to the economist.
"We see risks on the upside for our GDP forecast for quarter two," he writes.
