Investment sentiment in Germany rose more than expected in August, amid signs that the eurozone's recession may be coming to an end, a new survey found on Tuesday.
The widely watched investor confidence index calculated by the ZEW economic institute rose by 5.7 points to 42.0 points in August, beating analysts' forecasts for an increase to about 40 points this month.
"This is the highest reading since March 2013," ZEW said.
"First signs of an end to the recession in important eurozone countries may have contributed to the indicator's rise. Furthermore, the economic optimism is supported by the robust domestic demand in Germany," it said.
For the survey, ZEW questions analysts and institutional investors about their current assessment of the economic situation in Germany, as well as their expectations for the coming months.
The sub-index measuring financial market players' view of the current economic situation in Germany rose by 7.7 points to 18.3 points in August.
A frequent criticism of the ZEW index is that it can be volatile and is therefore not particularly reliable.