GERMAN investor sentiment declined sharply in May, following surprisingly weak economic growth and turbulence in the market for government debt.
The ZEW indicator of economic sentiment dropped 11.4 points, to a score of 41.9 for May, according to figures released yesterday by the eponymous firm.
It marks the sentiment indicator’s lowest point of 2015.
“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. However, only a small number of survey participants actually expect a deterioration of the economic situation,” said ZEW president professor Clemens Fuest.
Official figures last week showed that the Eurozone’s largest economy grew by just 0.3 per cent in the first three months of the year, down from 0.7 per cent in the final three months of 2014.
Meanwhile, 10-year German government debt is currently trading with a return of 0.6 per cent, up sharply from a trough of 0.06 per cent this time last month.