German analyst and investor confidence falls for fifth consecutive month
The Zew economic sentiment index has revealed German analyst and investor confidence plunged in September.
The index, which measures expectations of economic activity over the next six months, dived 18.3 points to minus 4.3 points in September – representing the fifth consecutive monthly fall.
Furthermore, the index fell much further than analysts had expected.
The index was based on a survey of 277 analysts and investors and conducted between August 30 and September 13.
As the survey was released, the euro fell against the dollar to 1.2845.
The figures are a surprise from Europe’s second largest economy. In the second quarter, German economic growth soared 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.
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.