Capital Economics: The German economy is showing signs of a turnaround, although business sentiment remains weak.

Franziska Palmas of Capital Economics stated that the business sentiment in Germany in February was still quite weak, but the country's economy is improving. The German Ifo business sentiment index rose to 88.6 this month, exceeding expectations, but still in contraction territory. Palmas said, however, that other surveys show a more optimistic situation, mentioning the German Central Bank activity index and PMI. "There are also signs that industrial orders are picking up, and fiscal stimulus measures are starting to take effect, so we are inclined to believe that the German economy is turning a corner," the analyst said.