BERLIN (AP) -- German investor confidence recovered in August from a 16-year low the month before, rising unexpectedly by 8.4 points as fears of an economic downturn in Europe's biggest economy appeared to ease, a key survey released Tuesday found.The report, though, was offset by a government announcement that producer-price inflation in July was up 8.9 percent from last year, with price surges in natural gas, electricity and mineral oils pushing the figure to a point last seen in October 1981, when it was 9.1 percent, or a 27-year high.
Such an increase is certain to weigh on the European Central Bank, which has kept interest rates at their highest point -- 4.25 percent -- since 2001 amid slowing growth in the 15-country euro zone. The bank meets next month to decide whether to adjust its benchmark rate.
The Center for Economic Research's monthly index, which measures investors' expectations for Europe's largest economy over the next six months, rose to negative 55.5 points in August from negative 63.9 points in July, the Mannheim-based group said. Though the figure improved, it remained well below the historical average of 28.3 points.
Read More
