German investor sentiment dips
INVESTORS in Germany reported a slight decline in optimism in April, ending a run of five consecutive months of growth, according to survey figures published yesterday.
The ZEW indicator of economic sentiment dropped to a score 53.3 points, a 1.5 point decline compared with March.
Despite the moderation, the index score is at a relatively high level compared with its long-term average of 28.4. It also a substantial improvement since October, when the figure was negative and the German economy looked like it was about to enter its third recession since 2008.
“The German economy is in good shape. A stable labour market and increasing wages are strengthening confidence and boosting consumption. However, the current weakness of the world economy is dampening export prospects and reducing the scope for further improvements of the economic situation in Germany,” said ZEW president professor Clemens Fuest.
Within the survey, investors reported strong sentiment regarding the current situation. The sub-index rose to by 15.1 points to a score of 70.2.