German investor sentiment fell again slightly in December, a survey showed today, as the financial sector took a fresh look at at what might lie ahead for Europe's biggest economy.
ZEW's poll of investors and analysts slipped lower for the third time in a row, to show a reading of 50.4 points, the economic research group said.
The barometer of Germany's financial sector stood at 51.1 points in November but analysts had expected it to edge down even lower to 49.5 points.
Analysts said the latest reading suggested that they saw potential obstacles ahead and had 'more realistic expectations' than previously regarding the economic outlook.
Germany emerged from its worst post-war recession in the second quarter and investors expect it to post modest growth in 2010, with the ZEW index remaining above its historical average of 26.9 points.
'This indicates that the financial experts still reckon with a slow economic recovery,' the institute's statement said.
'We are still at the bottom of a recession. Next year, we will see a recovery, but not an economic upswing,' ZEW president Wolfgang Franz said.
An assessment by investors of the current situation improved in November by five points to -60.6 points, the seventh consecutive rise and the highest level since November 2008.
ZEW polls 277 analysts and institutional investors for its monthly check on investor sentiment in Germany.
