BERLIN, Oct. 17 -- German investor confidence, although remaining negative, rose in October thanks to decreasing uncertainty on the financial markets during past weeks, according to a survey published on Tuesday.
Mannheim-based ZEW Center for European Economic Research said its Indicator of Economic Sentiment for Germany has increased by 6.7 points in October, climbing to minus 11.5 from minus 18.2 in September. This is the second increase of the indicator in a row.
"The indicator's rise shows that risks for the German economy have somewhat diminished according to the financial market experts," the ZEW said, adding that slightly more experts still expect the German economy to cool down instead of brightening up. The ZEW survey included 288 investment analysts.
It also noted that the share of experts holding a pessimistic view has again declined compared to the previous month. Furthermore, 45.5 percent of the experts forecast that the economic situation six months ahead will be more or less the same as today.
Analysts said the improved confidence owes much to the eased market fears following the European Central Bank's plans of potentially unlimited government bond-buying.
The survey also showed that the assessment of the current economic situation for Germany has weakened compared to the previous month. The respective indicator has dropped by 2.6 points in October and now stands at the 10.0 points-mark.
Even though Germany is performing better than its eurozone partners, the debt crisis is affecting the biggest economy in the common currency bloc. German economic growth slowed to 0.3 percent in the second quarter from 0.5 percent in the first one.
Earlier surveys by Ifo economic institute showed that German business confidence also continued to fall in September, the fifth successive decline in a row. Moreover, industrial orders dropped 1.3 percent in August largely due to weak domestic demand, official statistics showed.