German investor morale fell more than expected to 28.1 points in October, the ZEW economic institute said today, ending a five-month run of improvements, as high energy prices weigh on private consumption and investments.
Analysts polled by Reuters had expected the reading to slip to 30 from 34.7 points a month earlier.
“The German economy is slowly emerging from stagnation, but the recovery is not self-sustaining,” said ZEW President Achim Wambach.
He flagged private consumption and investment remained weak in the face of high energy prices, which put real incomes under pressure, inflate production costs and keep inflation higher for longer.
However, a reading by ZEW on views of the current economic situation improved more than expected to -35.9 points from -47.1 in September.
The results were based on survey responses from 178 analysts and institutional investors from October 12 to 19.
