Investors are increasingly confident that Germany's economy will rebound quickly from recession, a survey showed yesterday, providing some cheer less than two weeks before the country goes to the polls.

The closely-watched ZEW survey, which measures the mood of financial market players, rose slightly in September to 57.7 - its highest level since April 2006 - from 56.1 in August.

This was well above the historical average for the survey but was slightly lower than analysts surveyed by Dow Jones Newswires had expected.

"The economic expectations for Germany are consistent with the picture that the German economy is recovering, but at a slow pace," says the ZEW institute's president Wolfgang Franz.

Official data last month showed that Germany's economy, Europe's biggest, climbed out of its worst recession in six decades, registering a growth rate of 0.3 per cent in the second three months of the year.

The brighter outlook has boosted Chancellor Angela Merkel, who is seeking a second term in elections on September 27 and who has based her campaign around economic competence with the slogan: "The clever way out of the crisis."