Falling German sentiment dampens recovery hopes
HOPES of recovery in Germany were dashed yesterday by the second consecutive fall in the country’s investor sentiment, which worsened by more than expected in November.
The ZEW think-tank’s monthly poll of economic sentiment posted its lowest reading in four months, dropping to 51.1 from 56 in October.
A separate gauge of current conditions rose to -65.6 from -72.2. A reading of -70 had been forecast.
But although the euro fell against the dollar following the survey’s release, analysts remained upbeat.
Analysts said that the poorer number reinforced expectations that the Eurozone’s biggest economy faces another tough period in the first half of next year.
A series of more upbeat indicators for Germany had pointed to the euro zone having emerged strongly from recession in the third quarter – the official GDP numbers for the Eurozone are due out this Friday.