Eurozone recovery dealt MAJOR BLOW over fears for Germany's economy - confidence wanes
CONFIDENCE in Germany's economy has tumbled, dashing hopes for a growth boom over the coming year that could pull up the eurozone.
Investors expectations for financial success of the eurozone's largest economy over the next six months has fallen in June, a trusted survey revealed today.
The shock fall showed confidence fell 1.1 points to 18.6, a far cry from its long-term average of 23.9, as measured by the ZEW monthly survey.
Forecasters had been expecting the index to rise last month as growth across the eurozone picked up at the start of the year.
But the survey result now suggests the optimism could have hit a stumbling block.
The ZEW survey measures 350 economists and analysts’ optimism against pessimism regarding Germany’s financial success in the next six months.
ZEW president Achim Wambach put a brave face on the figures.
He said: "Prospects for the German economy remain favourable, not least thanks to the positive development of economic growth in the European Union in the first quarter of this year."
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It comes after President of the European Central Bank (ECB) also poured cold water over optimism surrounding the eurozone in a recent update.
Mario Draghi last week said low inflation in the eurozone is a worry and stressed that Governments must tackle economic reforms to boost growth.
Investors had hoped the ECB may start to talk about unwinding the extreme monetary measures designed to prop up the eurozone economy.