German investor confidence was stable in March, as economic analysts expect the economy to slowly recover in coming months, the ZEW economic research institute said today.

The ZEW Indicator of Economic Sentiment for Germany moved sidewards in March 2010. The indicator now stands at 44.5 points after 45.1 points in the previous month. This value is well above the indicator's historical average of 27.2 points.

The financial market experts expect the economy to recover slowly from the crisis within the next six months. Good news published in January with respect to industrial production and incoming orders in Germany seem to have reassured the financial market experts in this assessment. According to the financial market experts, the export-oriented industries, i.e. mechanical engineering, chemicals, and steel will drive economic growth. "German business activity has moved from the intensive care unit to the rehab. But it is still far from full recovery," said ZEW President Prof. Wolfgang Franz.

The Centre for European Economic Research (ZEW) in Mannheim is a nonprofit and independent institute with the legal form of a limited liability company (GmbH). Founded in 1990 on the basis of a public-private initiative in the Federal State of Baden-Württemberg in co-operation with the University of Mannheim.

In March the assessment of the current economic situation in Germany improved slightly compared to the previous month. The corresponding indicator rises by 2.9 points to minus 51.9 points. The economic expectations for the Eurozone fell in March by 2.3 points. The respective indicator now stands at 37.9 points. The indicator for the current economic situation in the Eurozone improved by 0.8 points and now stands at minus 61.3 points.

Some 289 analysts participated in the March-survey which was conducted during the period March 01- March 15. Analysts were asked about their expectations for the next 6 months.