Economic data

The ZEW Center for Economic Research index said its monthly measure of investor outlook rose a better-than-expected 16.6 points in August.

The index in August reached 56.1 points from 39.5 in July. The results came less than a week after data showed the German economy emerging from recession.

Germany's export-driven economy sank into recession last year as the global downturn dried up demand for its manufactured goods.

'No reason for euphoria'

But last week, the country reported that it saw a 0.3 percent increase in growth in the second quarter compared with the previous quarter, technically lifting out of its worst recession in decades.

However, ZEW chairman Wolfgang Franz warned against euphoria.

"There is no reason for euphoria," he said. "The German economy is dependent on developments in the global economy and should therefore recover only gradually."

The ZEW index is based on a survey of institutional investors and analysts. It helps to set the stage for other major European economic sentiment surveys to be released later in the month, including Germany's closely watched Ifo business confidence survey.

jen/AFP/dpa
Editor: Trinity Hartman