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German investor morale falls in May as Brexit risks cloud outlook

Published 24/05/2016, 10:52
© Reuters. Traders work at their screens in front of the German share price index DAX board at the stock exchange in Frankfurt

BERLIN (Reuters) - The mood among German analysts and investors worsened unexpectedly in May as risks, including a possible British exit from the European Union, cloud the outlook in Europe's biggest economy, a survey by think tank ZEW showed on Tuesday.

Mannheim-based ZEW said its monthly survey showed a fall in its economic sentiment index to 6.4 points in May from 11.2 the previous month. That compared with the Reuters consensus forecast for a rise to 12.0.

A separate gauge of current conditions rose to 53.1 points from 47.7 in April, coming in stronger than the Reuters consensus forecast for a reading of 48.9.

"Uncertainties such as a possible Brexit do not allow a more optimistic outlook," ZEW president Achim Wambach.

He added investors had doubts that the German economy would continue to grow at the same pace after a surprisingly strong first quarter rate of 0.7 percent.

© Reuters. Traders work at their screens in front of the German share price index DAX board at the stock exchange in Frankfurt

The ZEW index was based on a survey of 211 analysts and investors conducted May 9-23.

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