Germany's economic sentiment weakened for the first time in three months, defying expectations for improvement as financial experts do not expect the strong performance of the economy in the first quarter to continue, results of the latest survey from the Centre for European Economic Research or ZEW showed Tuesday.
The ZEW Indicator of Economic Sentiment for Germany dropped to 6.4 from 11.2 in April. Economists had forecast a score of 12. The index declined for the first time since February.
"The strong growth of the German economy in the first quarter of 2016 appears to have surprised the financial market experts," ZEW President Achim Wambach said.
"However, they seem not to expect the economic situation to improve at the same pace going forward."
Uncertainties regarding developments such as a possible "Brexit" currently inhibit a more optimistic outlook, the Mannheim-based think tank said.
Meanwhile, the current situation index of the survey rose to 53.1 from 47.7 in the previous month. Economists had forecast a reading of 49.
The economic sentiment index for the euro area also declined in May. The sentiment indicator for Eurozone fell to 16.8 from 21.5 in April. The current situation index added 2.9 points to -9.2.
For comments and feedback: editorial@rttnews.com