Berlin - German investor confidence reported its eighth consecutive monthly rise in June, a key indicator to be released Tuesday is forecast to show, adding to hopes of a pickup in Europe's biggest economy later in the year.

Analysts predict the Mannheim-based Centre for European Economic Research (ZEW) will say its monthly index measuring the mood among analysts and institutional investors edged up to 35 points in June compared to 31.1 points in May.

The forecast June increase comes despite the recent publication of a steady stream of bleak economic data with German exports, industrial production and factory orders falling sharply in the wake of the global recession.

Apart from concerns about a sudden rise in oil prices threatening to slow the pace of recovery in the world economy, many economists believe that an acceleration in unemployment now also threatens to undercut a pickup in global growth.

The projected 3.90-point-rise in the June ZEW index follows the 18-point jump in the May indicator, which measures the mood among analysts and institutional investors.

In the meantime, the build-up to the release of the latest ZEW indicator has been accompanied by more positive economic signals emerging from two of the world's powerhouse economies - the US and China.

Based on a survey of about 300 analysts, the ZEW indicator helps to set the stage for other major European economic sentiment surveys to be released later in the month, including Germany's closely watched Ifo business confidence survey.(dpa)