The ZEW Indicator of Economic Sentiment for Germany has increased by 32.2 points in January 2012. The indicator now stands at minus 21.6 points. This is the highest level of the indicator since July 2011. Nevertheless, the indicator is still below its historical average of 24.5 points. This month’s increase suggests that within the next six months German economic activity is likely to stabilize instead of deteriorating further. Improved economic data from the United States as well as the recent decline in yields from Spanish and Italian government bonds may have contributed to the indicator’s increase. "Contrary to ... (full story)