German investor morale sharply rose in November, signaling that economists and analysts believe the worst is over for the euro zone's largest economy.
The ZEW index rocketed to 11.5 points in November versus -3.6 points in October – the first time the index had fallen into negative territory since November 2012.
The results were much better than forecast, with analysts polled by Reuters expecting a reading of only 0.5 points.
The Centre for European Economic Research (ZEW) polls 350 economists and analysts on their outlook on the economic future of Germany and the results come as a surprise, particularly after Germany narrowly avoided falling into recession in the third quarter, data showed last week, with the economy expanding 0.1 percent quarter-on-quarter.
There were better growth figures for the euro zone as a whole, however, with gross domestic product (GDP) growing by 0.2 percent on the previous quarter, according to data from the Eurostat, beating a Reuters forecast of a 0.1 percent expansion.
The recent growth figures for the euro area suggested "that the economy is stabilizing," according to ZEW President Clemens Fuest, and had contributed to the [ZEW] indicator's increase."
"However, the economic environment remains fragile, not least due to ongoing geopolitical tensions," Fuest added in the data report.
Despite the weak data, Germany's politicians and analysts appear divided on whether the government needs to rescue its own economy -- let alone that of the euro zone. Germany's deputy finance minister told CNBC that Germany faced a "question of priorities, not of spending more" in order to stimulate growth.
Michael Meister told CNBC on Monday that Germany's budgetary decisions hinged on keeping the budget balanced. "We have tried to balance the budget but we have looked to see if we could make more investments out of the budget -- which reduces money in other positions. So it's a question of priorities, not of spending more," he said.
Finance Minister Wolfgang Schaeuble said in September that Germany would not take on new debt next year for the first time since 1969. The decision has irked euro zone peers who want Germany to increase investment to help revitalize the euro zone economy.