A measure of German economic sentiment declined more-than-expected in May, as optimism among financial analysts was dampened by the lackluster growth figures for the first quarter, results of a key survey showed Tuesday.
The ZEW Indicator of Economic Sentiment for Germany declined to 41.9 from 53.3 in April, the Mannheim-based Centre for European Economic Reserach, or ZEW, said. Economists had forecast a much smaller drop in the index to 49.
However, the reading is well above its long-term average of 24.9 points.
The current conditions index of the survey weakened to 65.7 in May from 70.2 in April. Economists had predicted a score of 68.
“Financial market experts have adjusted their optimistic expectations downward in May due to unexpectedly poor growth figures in the first quarter of 2015 and turmoil on the stock and bond markets,” ZEW President Clemens Fuest said.
“However, only a small number of survey participants actually expect a deterioration of the economic situation.”
The economic sentiment for the Eurozone also declined in May, down by 3.6 points to a reading of 61.2 points. The current conditions index, meanwhile, gained 11.8 points to minus 16.5 points.
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