Highest confidence in German economy since June

The outlook for the German economy is more positive, according to German investors and analysts.

The Zew index, a monthly survey of sentiment, rose to 13.1 in October. Analysts had expected an index of 10.0, according to Bloomberg's compilation.

This is the first month since June that the index has risen. Behind the optimism lies, among other things, the falling inflation and expectations of further interest rate cuts from the ECB.

However, the current situation index fell unexpectedly sharply, to minus 86.9. Analysts had expected a fall to minus 84.