Further signs of a slowdown in the German economy, which has been the Eurozone’s most reliable powerhouse since the financial crisis, emerged with a more bearish survey of investors yesterday.
The Zew index declined again this month, to 27.1 from 19.8. Although any figure above zero implies that investors are generally positive on balance, the index has now declined in every month since December, when it hit 62.
Jennifer McKeown of Capital Economics noted that the index has never fallen for seven months without a slowdown in German growth. Investors are now less confident than at any point since the end of 2012.
Swedish manufacturer SKF also expressed scepticism about the European recovery, forecasting little uptick in demand from the continent in the quarter ahead. The dreary outlook follows a slump in industrial production in May.