German investor morale fell unexpectedly to 58.3 points in February, the ZEW economic research institute said today, showing that the recovery of Europe's biggest economy remains shaky.
Analysts polled by Reuters had expected the reading to rise to 65 points, from last month's 59.6.
However, the assessment of the current economic situation continued to improve, with the indicator rising to -65.9 points from -72.7.
"The German economy has entered a phase of recovery, albeit a fragile one," said ZEW president Achim Wambach.
He added that there are still considerable structural challenges, especially for industry and private investment.
The export-oriented sectors showed moderate to strong improvements in February, with prospects particularly improving for the chemical and pharmaceutical industries, steel and metal production and mechanical engineering, reflecting better than expected incoming orders at the end of 2025.
Despite continuing uncertainty, prospects for private consumption are improving, ZEW added.
