German investor confidence remains weak as economic fears grow

Business Materials 18 August 2008 21:32 (UTC +04:00)

German investor confidence remained weak in August, a key indicator to be released Tuesday is forecast to show, as concerns have set in about the outlook for Europe's biggest economy, dpa reported.

Drawn up by the Mannheim-based Centre for European Economic Research, analysts predict the ZEW index for this month will come in at minus 62 points.

The world financial market and credit crisis combined with resurgent inflation have helped to fuel worries about outlook for the world economy.

The ZEW July index dropped by 11.5 points to minus 63.9 points in July.

Based on the responses of about 350 analysts and institutional investors, the ZEW indicator is the first of Europe's leading monthly sentiment indices to be published for August.

The publication of the ZEW index comes in the wake of data released last week showing German economic growth contracting by 0.5 per cent in the second quarter as fears grow that Europe could be edging its way towards a recession.