German investor confidence stuck at five-year low: survey
Frankfurt am Main (AFP) –
Investor confidence in Germany remained at its lowest level since November 2012 in May after plunging last month, a regular survey showed Tuesday.
The ZEW economic institute reported a reading of -8.2 points in its monthly barometer for the second time in a row.
"Relatively good results for German exports and industrial production in March were overcome by new politically driven uncertainty," ZEW chief Achim Wambach said in a statement.
Before April, the last time confidence among financial players fell into the red was in July 2016, shortly after Britain's shock vote to quit the European Union.
"The cancellation of the Iran nuclear agreement by the United States and fear of a further escalation in the trade conflict with the US, as well as rising oil prices, burdened expectations for the economic outlook in Germany," Wambach said.
ZEW's latest survey comes the same day as official data showed German GDP growth halved its pace at the start of the year, to 0.3 percent, although analysts argued that one-off effects like strikes, cold weather and a flu outbreak bore much of the blame.
The institute found investors' expectations for the future economic situation in the 19-nation eurozone had perked up slightly.
But investors' assessments of the current economic situation in both Germany and the single currency area were a little bleaker.
ZEW polled some 210 analysts between April 30 and May 14 to compile their confidence index.
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