Despite the turbulent start of the year for global share markets, confidence of German institutional investor and financial analysts has fallen less than expected.
According to the Centre for European Economic Research (ZEW), German investor confidence fell to 10.2 point in January from 16.1 in December. This drop of 5.9 points is less than the 8 point drop analysis have expected in a dpa-AFX survey. Still, German economic prospects are cautiously optimistic. The ZEW index measuring investors‘ assessment of current economic conditions rose to 59.7 in January from 55 in December, its highest level since September last year.
Based on 227 investor opinions, the indicator is seeks to project economic sentiments for the upcoming six months. "As in the previous year, weak economic growth in China and other important emerging markets puts a strain on Germany‘s economic outlook," comments Sascha Steffen, who heads up the ZEW‘s international financial management research department.