German investor confidence unexpectedly rose for the first time in 10 months in December, indicating Europe's largest economy is weathering the region's debt crisis.
The ZEW Center for European Economic Research in Mannheim said its index of investor and analyst expectations, which aims to predict economic developments six months in advance, increased to minus 53.8 from a three-year low of minus 55.2 in November.
Economists forecast a drop to minus 55.8, the median of 34 estimates in a Bloomberg News survey.
ZEW's gauge of current conditions fell to 26.8 from 34.2 in November.
Standard and Poor's placed the ratings of 15 euro nations, including AAA-rated France and Germany, on review for possible downgrade last week pending an assessment of the recent summit. Moody's Investors Service said yesterday it will review the ratings of all European Union countries after leaders failed to produce "decisive policy measures" to end the debt crisis.
"Economic expectations seem to have bottomed out," said ZEW chief Wolfgang Franz. "Financial analysts are clearly expecting low growth, but not a crash of the German economy in the next six months," he said.
Agencies
