German investor confidence jumps to one-year high

Investors were optimistic towards the outlook of German economy at the start of the new year, a survey found on Tuesday.

An indicator measuring the confidence of investors increased for the third consecutive month in January 2015 and reached the highest level since February 2014, the survey by Centre for European Economic Research (ZEW) in Mannheim showed.

The indicator now stands at 48.4 points, 13.5 points higher than in previous month.

ZEW said investors' confidence was boosted by falling energy prices and a weak euro despite recent fluctuations in stock markets and uncertainties over the coming elections in Greece.

"The new year started with turmoil in the capital markets ... However, this seems not to have impressed ZEW's financial market experts with regard to their expectations on the German economy. Instead, decreasing crude oil prices and a depreciating euro have contributed to a further gain of the indicator," said ZEW President Clemens Fuest in a statement.

Crude oil prices have dropped by almost 60 percent since June 2014, dragging consumer prices growth in Germany down to a five-year low level and inflation rate in the euro zone to negative in December.

While the prolonged low inflation added pressure on the European Central Bank. It was seen as a stimulating factor to private consumption.

German central bank Bundesbank said on Monday that German economy revived faster than many had expected due to falling energy prices and positive sentiments.

In 2014, German gross domestic product (GDP) increased by 1.5 percent, up from the 0.1 percent in 2013 and 0.4 percent in 2012.

German statistical office Destatis was scheduled to release German growth data in the final quarter of 2014 at mid-February. Analysts said the coming figure would show more clearly that German growth accelerated at the end of last year. Endit