BERLIN, July 21 (Reuters) – German investor morale rose significantly more than expected in July as a government reform package has brightened the mood despite ongoing uncertainty about the conflict in Iran, a survey found on Tuesday.
The indicator of economic sentiment more than doubled, to 26.3 points from 10.5 points the month before, the ZEW economic research institute said.
Analysts polled by Reuters had anticipated the reading rising to 17.5 points.
“The economic outlook continues to improve in July; it seems that the reforms are having an effect,” said ZEW president Achim Wambach.
German Chancellor Friedrich Merz outlined a package of pension, tax and labour reforms this month, along with measures to cut red tape that he said would boost growth, jobs and competitiveness while maintaining social welfare protections.
The assessment of the current economic situation also rose in July, though it remained in negative territory at minus 77.6 points. In June that reading had been at minus 81.0 points.
(Reporting by Miranda Murray, editing by Linda Pasquini)
