German analyst and investor confidence down in November
The Zew economic sentiment index has revealed German analyst and investor confidence fell in November more than expected.
The index, which measures expectations of economic activity over the next six months, fell from 56 in October to 51.1.
Germany, which is Europe’s largest economy, emerged from recession in the second quarter of the year after experiencing positive growth.
The euro slid against the dollar as the news emerged, falling from $1.4996 to about $1.4975.
Commenting on the figures, BHF Bank’s Gerd Hassel said: “It is astonishing that the index has worsened. Apparently the mood on financial markets is sinking again.”
“Realism is returning. That also has something to do with the fact that recent favourable developments were driven by fiscal policy measures.”
In related news, official data yesterday revealed a 2.7% rise in German industrial output in September. The news surprised analysts and followed a revised 1.8% rise in August.