A survey has shown that German investor morale deteriorated more than expected in August, overshadowed by a crunch in global credit markets.
The ZEW think-tank said its economic sentiment indicator, based on a survey of 291 analysts and institutional investors, fell to -6.9 this month from 10.4 in July.
The survey was conducted between July 30 and August 20, when international financial markets were reeling from fears about a global liquidity crisis. The drop in the headline reading was the third in a row and the biggest since August 2006.
Germany's economic growth rate slowed to 0.3% on the quarter in the April-June period from 0.5% in the first three months of the year, held back by a decline in construction investment.
A separate ZEW gauge of current conditions for Germany fell to 80.2 this month from 88.2 in July.
