January reading of 16.9 vs 15.0 forecast
Receding energy fears, lower inflation helped
Analysts Economy not out of the woods yet

BERLIN, Jan 17 Reuters German investor sentiment was in positive territory in January for the first time since the Ukraine war began as signs point to a milder recession over the winter months than initially feared, the ZEW economic research institute said on Tuesday.

The institute39;s economic sentiment index rose to 16.9 from minus 23.3 in December, beating expectations by analysts polled by Reuters of a reading of minus 15.0.

For the first time since February 2022, the month in which the war in Ukraine began, the indicator points to a noticeable improvement in the economic situation over the next six months, ZEW President Achim Wambach said.

Wambach said a more favourable situation on the energy markets and energy relief measures by the German government in particular contributed to the 40.2point leap in January.

The prospect of easing inflation lifted expectations for consumerrelated sectors while the lifting of COVID19 restrictions in China has brightened the picture for exportoriented and energyintensive sectors, he added.

The easing inflationary shock and wellfilled gas storage facilities are making fears of a recession evaporate, said Hauck Aufhaeuser Lampe private bank economist Alexander Krueger.

German inflation eased further in December, with consumer prices rising by 9.6 year on year in harmonised terms, the federal…