Investor sentiment in Germany rose in December for the first time since January, the latest survey by the ZEW economic research institute has showed.
The Mannheim-based think tank said today its economic expectations indicator for Germany, which is based on a survey of 303 analysts and institutional investors, rose to -19.0 from -28.5 in November.
December's expectations reading was the highest since -5.6 in August and came after recent upbeat reports on the economy.
The sentiment indicator shows the balance between positive and negative expectations about German economic activity.
"Expectations have passed through the trough and are now on the rise thanks to robust economic perspectives," ZEW President Wolfgang Franz said in a statement.
A ZEW gauge of current conditions for Germany rose to 63.5 from 53.0 in November - the highest since the institute began the index in December 1991, though ZEW economist Matthias Koehler said he expected the conditions index to fall in January when a rise in value-added tax kicks in.
The European Central Bank lifted rates to a five-year high of 3.50 per cent last Thursday.
Germany's economic recovery has gained in breadth this year, with buoyant private consumption, exports and investment powering growth of 0.6 per cent in the third quarter - the seventh consecutive quarter of expansion.