German investor sentiment slips unexpectedly in April: ZEW

[FRANKFURT] Investor sentiment in Germany fell for the first time in six months in April as weak global growth weighed on confidence, a leading survey found on Tuesday.

The widely watched investor confidence index calculated by the ZEW economic institute slipped by 1.5 points to 53.3 points in April, disappointing analysts' expectations for a further increase this month, ZEW said in a statement.

"The German economy is in good shape. A stable labour market and increasing wages are strengthening confidence and boosting consumption," said ZEW president Clemens Fuest.

"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," Mr Fuest added.

For the survey, ZEW questions analysts and institutional investors about their current assessment of the economic situation in Germany, as well as their expectations for the coming months.

The sub-index measuring financial market players' view of the current economic situation in Germany jumped by 15.1 points to 70.2 points in April, its highest level since July 2011.

A frequent criticism of the ZEW index is that it can be volatile and is therefore not particularly reliable.

AFP