Germany ZEW investor confidence index drops to 29.8 in June

Nathan Andrada – Fourth Estate Cooperative Contributor

Frankfurt, Germany (4E) – Investor confidence in Germany declined for the sixth consecutive month, despite analysts anticipated an increase, according to a closely watched poll released Tuesday.

The ZEW sentiment index for economic expectations dropped to 29.8 in June from 33.1 in May, according to a survey of 234 analysts and institutional investors. Economists polled by The Wall Street Journal had predicted a reading of 35.0.

The indicator has been falling since January, impacted by China, emerging markets and concerns about the Ukrainian crisis. ZEW department head Michael Schroeder said that seasonal factors were the main reason for the decline in June. The mild winter weather resulted to a strong first quarter for Germany, though signs indicate a weaker second quarter.

Despite the slide in economic expectations, the economic expansion in Europe’s biggest economy is currently not at risk, according to the survey. The ZEW measure for current conditions climbed to 67.7 from 62.1 in May. Economists had predicted a flat reading at 62.1.

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