BERLIN, Aug. 13 (Xinhua) -- German investor confidence rose in August to the highest level since March, thanks to the improvement signs of German and European economy, the Centre for European Economic Research (ZEW) said on Tuesday.
ZEW's forward-looking Indicator of Economic Sentiment for Germany increased by 5.7 points in August to 42.0 points, the highest level since March 2013.
"First signs of an end to the recession in important eurozone countries may have contributed to the indicator's rise. This is also reflected by the strong increase of economic expectations for the eurozone. Furthermore, the economic optimism is supported by the robust domestic demand in Germany," said the Mannheim-based institute.
Its survey based on 252 analysts interviews also showed that investors' assessment of the current economic situation for Germany improved in August, so did their expectations for the eurozone economy.
Earlier Tuesday, German Federal Statistical Office confirmed its provisional estimate that inflation rate in the Europe's largest economy remained at a stable level of 1.9 percent in July, lower than the European Central Bank's price stability maintenance target of 2.0 percent.
Moderate inflation, stable labor market and historically low interest rate have contributed to a strong domestic demand in Germany. Suffering a contraction of 0.7 percent in the last quarter of 2012, the traditional export-oriented economy was expected to recover in 2013, driven by the engine of domestic demands.
Bundesbank, Germany's central bank, expected German economy to grow by 0.3 percent in 2013 and by 1.5 percent next year.