The mood among German analysts and investors improved slightly in August, a key survey has showed. As Sonia Legg reports, it regained some of the ground it lost last month following Britain's vote to leave the European Union.
The robots didn't stop but Germany did feel a jolt when Britain voted to leave the EU in June. German analysts and investors were so worried sentiment fell close to minus 7. It's all change this month though with the latest ZEW survey back in positive territory. (SOUNDBITE) (English): DARREN SINDEN, INDEPENDENT MARKET ANALYST, SAYING: "We're less than two months beyond Brexit poll and none of the real work has yet been started yet in terms of the UK extracting itself from the European Union and it's not really clear to anybody what that will mean over the longer term." So Germany is getting on with it regardless. And second quarter growth of 0.4 percent is higher than expected, thanks to higher exports and increased state spending. (SOUNDBITE) (English): DARREN SINDEN, INDEPENDENT MARKET ANALYST, SAYING: "It's having to deal with a large influx of refugees and a rebalancing in the underlying economy as well as a downturn in the global economy as a whole." And Britain's limbo is still a risk. (SOUNDBITE) (English): DARREN SINDEN, INDEPENDENT MARKET ANALYST, SAYING: "Seven per cent of German exports come from the UK - it's about 15 per cent of UK imports so there is a significant trading relationship between the the UK and Germany and one that they won't really want to throw away if they can avoid it." But Germany is helping itself too. Record-high employment, rising wages and stable prices have boosted domestic demand. That's expected to drive economic expansion to 1.7 percent this year - on par with last year, despite the Brexit shock.