German economic sentiment fell to 44.5 in March from 45.1 in February, a monthly survey conducted by the Centre for European Economic Research or ZEW showed Tuesday. The index stood above the consensus forecast of 43.5 and also well above its historical average of 27.2.

Further, the survey showed that the assessment of the current economic situation in Germany improved slightly by 2.9 points to minus 51.9 points in March. The expected reading was minus 52. ZEW President Wolfgang Franz said, "German business activity has moved from the intensive care unit to the rehab. But it is still far from full recovery."

The economic expectations for the Eurozone dropped in March by 2.3 points to 37.9 points. Meanwhile, the current economic situation index climbed 0.8 points to minus 61.3 points.