Sentiment among German investors has dropped again, and now stands at 47.2 points, the ZEW economic research institute said today. This latest fall is the fourth decline in a row and brings the index to the lowest level since last July.
The barometer of Germany's financial sector stood at 50.4 points in December and analysts had expected it to edge down to 49.8 points this time around. However, the ZEW index remains well above its historical average of 26.9 points.
'The development of the indicator suggests that the surveyed financial market experts expect the German economy to recover only at a slow rate within the next six months,' a ZEW statement said.
'According to the experts, the automobile and consumption sector is likely to develop downwards in the next half year,' it added.
Germany emerged from its worst post-war recession in the second quarter and is expected to post modest, possibly uneven growth in 2010.
In its measure of the current situation, ZEW said that an assessment by investors improved in December by four points to -56.6 points, ZEW said, the eighth consecutive rise and the highest level since November 2008. Analysts had expected it to improve to -55.5 points from -60.6 points in November.
