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German investor morale falls


German investor morale falls


German investors and financial analysts are more pessimistic about the future according to the latest survey by the ZEW economic think tank.

The reading indicates a tepid, fragile recovery for Europe’s largest economy. The fall in investor sentiment was small, but it is the first time that has happened in three months. Hopes have been rising about the outlook for the German economy in recent months, fuelled by a rise in industrial orders and a pick-up in foreign demand. However, much of this can be attributed to government stimulus measures and senior policymakers have said the recovery is not yet self supporting. The ZEW economists believe a fall in exports in August probably dampened sentiment, and noted the ongoing uncertainty about a recovery in domestic consumption in Germany.

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