SHANGHAI, Sept. 20, 2017 /PRNewswire/ -- The sentiment from German investors was better than anticipated this month as concerns regarding the strengthened Euro diminished. This indicates that markets expect the German economy to retain a track record of strong growth and performance in the next few months.
Record low rate of unemployment, increasing real salaries and very low borrowing costs are fueling consumer-led growth in Europe's largest economy. It is anticipated that the economic upswing will boost Chancellor Angela Merkel's chances for victory and a fourth term in office at the upcoming federal election due to be held on Sunday.
According to a survey by Shanghai, China based Ashton Whiteley, German economic sentiment increased by 7 points in August which was a full 4.5 points more than predicted by analysts.
Another survey to gauge investors' opinion of the economy's current state also increased last month and beat analysts' predictions.
Another positive indication for Europe's biggest economy is the recently amended forecast of the HDE retail association. On Tuesday it predicted that nominal sales will increase by 3 percent, instead of its original forecast of 2 percent.
An analyst for Ashton Whiteley stated that financial market experts were more encouraged due to data showing strong economic growth for Germany in the second quarter.
Adding to overall optimism by investors is a surge in investment activity by both companies and government as well as an increase in bank lending.
Ashton Whiteley analysts are of the opinion that investor sentiment is also boosted by stable economic development on a global scale.
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SOURCE Ashton Whiteley