Investor sentiment in Germany rose by more than expected in January.

Hopes have improved exports outweighed concern about the impact of lock down measures.

The ZD W economic Institute said on Tuesday that its survey of investor sentiment increased to 61.8 this month.

That's up from 55 in December.

It added that export expectations in particular have risen significantly.

Unprecedented government rescue and stimulus measures helped lessen the shock of the pandemic in Germany last year, its GDP shrank by 5% a smaller contraction than during the global financial crisis.

January's rise and investor morale, the second in a row added to signs that the economy is holding up well.

A separate survey of 2000 businesses at the start of the year showed that 30% of industrial firms expect export business to improve, exceeding the 22% who think it will get worse.

But challenges remain as Germany battles are high infection rate.