German economic confidence declined for the first time since October, survey data from the Centre for European Economic Research, or ZEW, showed Tuesday.
The indicator of economic sentiment dropped unexpectedly by 1.5 points to 53.3 in April. Economists had forecast the index to improve to 55.3.
Meanwhile, the current conditions index rose sharply to 70.2 in April from 55.1 in March. The indicator was forecast to rise marginally to 56.5.
“The German economy is in good shape,” ZEW President Clemens Fuest said. “A stable labor market and increasing wages are strengthening confidence and boosting consumption.”
“However, the current weakness of the world economy is dampening export prospects and reducing the scope for further improvements of the economic situation in Germany,” Fuest said.
ZEW’s indicator of economic sentiment for the Eurozone gained 2.4 points to a reading of 64.8 points. Similarly, the indicator for the current situation in the euro area climbed 8.3 points to minus 28.3 points.
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