German analyst and investor confidence falls for fourth straight month
The Zew economic sentiment index has revealed German analyst and investor confidence plunged in August, new data has revealed today.
The index, which measures expectations of economic activity over the next six months, fell from 21.2 in July to 14 in August – the lowest level since April last year and the fourth straight month in which the index fell.
Furthermore, the index fell much further than the 20 or 21 analysts had expected.
The index was based on a survey of 284 analysts and investors and conducted between 26 July and 16 August.
Meanwhile, the figures come just a few days after the German economy, which is Europe’s largest, grew by a record 2.2% in the second quarter – the fastest quarterly growth in 20 years.
The figures smashed analysts forecasts who had expected growth of around 1%.
The strong growth was boosted by exports, helped by a weaker euro. On an annual basis, exports were 29% higher.
Germany had been the world’s largest exporter since 2003 but earlier this year, China took the top spot, pushing Germany into second place.
Export demand helped to bring Germany out of recession in the second quarter of last year – much sooner than many of its counterparts throughout the world.
Meanwhile, commenting on today’s figures, the Zew Institute said: “The decrease … indicates that the enormous growth observed in the second quarter is unlikely to continue.”
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