Berlin, Germany (4E) – Investor confidence in Germany dropped for the seventh consecutive month in July, although the outlook for the medium term continues to be upbeat, according to results of a survey released Tuesday.
The ZEW sentiment survey showed the reading dropped to 27.1 in July, from 29.8, below the estimate of analysts surveyed by the Dow Jones Newswires of 28.0 released ahead of the result. The reading is the lowest level since December 2012. The survey also showed that the current conditions survey dropped to 61.8 in July from 67.7, its first drop since November last year.
The data from the ZEW lead indicator was gathered from a poll of 238 analysts and institutional investors.
Indicators have shown that industrialists and businesses in Germany are concerned about the impact of turmoil in other parts of the world on their profits. The Munich-based Ifo Institute said last month that the German economy is worried about the potential risks of the crises in Iraq and Ukraine.
Economists predict that the German economy will expand at around 2 percent this year, as a strong job market bolstered domestic demand.