BERLIN, (Reuters) – Investor sentiment rose in Germany unexpectedly in November due to expectations that the price pressures would ease in next year’s start and growth will pick-up in Europe’s largest economy.

The ZEW economic research center said that its economic sentiment indicator rose to 31.7 points from 22.3 in October. A Reuters poll predicted a decline to 20.0

Achim Wambach (ZEW President) stated that “Financial Market Experts are more optimistic for the coming six month,” in a statement.

He said that investors had expected supply shortages and inflationary pressures to hold down the economy’s current quarter. The current conditions index dropped from 21.6 to 12.5.

Wambach stated that for the first quarter in 2022 they anticipate growth will pick up and inflation to decline both in Germany as well as the euro area.

Supply bottlenecks for raw and preliminary materials have weighed down industrial production https://www.reuters.com/business/german-industrial-production-drops-september-supply-chain-shortages-2021-11-05 in Germany. Exports fell https://www.reuters.com/business/german-exports-fall-second-consecutive-month-september-2021-11-09 for a second consecutive month in September.

German consumer goods group Henkel trimmed its full-year earnings outlook https://www.reuters.com/article/henkel-ag-results/update-1-henkel-takes-earnings-hit-from-raw-material-prices-idUSL8N2RZ0W6 on Monday, saying it could not fully compensate for a spike in raw materials prices.

Infineon (OTC) receives around 40% of its revenue from the auto sector. Chief Executive Reinhard Plloss stated Tuesday that the company expects that the supply of critical semiconductors will remain stable well into the next year.

Despite the bottlenecks, German retailers expect Christmas sales to rise https://www.reuters.com/business/retail-consumer/german-retailers-optimistic-about-christmas-sales-2021-11-08 2%, the HDE industry association said on Monday.