According to the ZEW institute, the index measuring economic expectations among German investors for next six months fell to 18.6 in June from 20.6 in the previous month. Meanwhile, analysts had expected the indicator’s rise to 21.7.
The index for the current economic situation in Germany rose above forecasts. Investors’ assessment of the current economic situation rose to 88, the highest level since July 2011, and up from May’s print of 83.9.
Economists had expected the index to rise to the level of 85. Despite the drop, the prospects for German economic growth are still positive.
“Prospects for the German economy remain favorable, not least thanks to the positive development of economic growth in the European Union in the first quarter of this year," ZEW president Achim Wambach said.
He added that 70.8% of the financial market experts expect the current situation to remain as favorable as it is at the moment, and 23.9% even expect it to improve in the coming six months.
The eurozone and EU GDP growth for the first quarter was revised up to 0.6% from the previous estimate of 0.5%.
