German investor confidence worsens in October: ZEW
German investor confidence fell further in October, as finance experts expected Europe's biggest economy to tread water in the coming six months, the ZEW economic research institute said on Tuesday.
The ZEW economic expectations indicator, based on a survey of 282 analysts and institutional investors, fell to minus 7.2 points from minues 4.3 points in September, its sixth consecutive monthly drop to the lowest level in 21 months.
"More than half of the financial market experts expect no change of the economic situation in Germany within the next half year," a statement said.
ZEW added for its part that "the repeated decline of economic sentiment in October indicates that compared to the period of rapid recovery, economic growth is likely to slow down in the next six months."
A forecast of analysts compiled by Dow Jones Newswires had expected a slightly smaller decline to minus seven points.
ZEW also measures investors' assessment of current conditions, and that indicator "improved considerably" to 72.6 points from 59.9 points however, surpassing the analyst forecast of 63.5 points.
But the drop in expectations "highlights understandable concerns that the eurozone's growth engine could soon stall," Capital Economics senior European economist Jennifer McKeown said.
"With global demand weakening and the euro stubbornly strong, we think that investors are right to expect a sharp slowdown," she added.
© 2010 AFP