German investor morale fell unexpectedly in June, the monthly ZEW survey showed on Tuesday, although signs of healthier growth across the EU were seen as underpinning the outlook for Germany.
The Mannheim-based ZEW research institute said its economic sentiment index fell to 18.6 from 20.6 in May. The Reuters consensus forecast was for a rise to 21.5.
A separate gauge measuring investors’ assessment of the economy’s current conditions rose to 88 from 83.9 last month, reaching the highest level since July 2011. This compared with the Reuters consensus forecast of 85.
“The prospects for the German economy remain favorable. This is not least due to the positive gross domestic product (GDP) growth in the EU in the first quarter of 2017,” said ZEW President Achim Wambach in a statement.
The German Economy Ministry said in its monthly report on Tuesday that an upturn in Germany was continuing during the second quarter, helped by noticeable rises in private and state spending and by an increase in industrial activity.
It added that a slight revival of the global economy was supporting German exports, which in April rose more strongly than expected. Coupled with a rise in industrial production in the same month, that fuelled hopes that the German economy can continue a recovery that started nine years ago.

Source: Arab News