German investor sentiment picks up less than expected in May - ZEW
(ShareCast News) - German economic sentiment improved less than expected in May, according to the latest survey from the ZEW Center for European Economic Research in Mannheim.
The index of economic sentiment rose to 20.6 from 19.5 in April, missing expectations for a reading of 22.0.
However, the current situation index printed at 83.9 from 80.1 the month before, beating expectations for a reading of 82.0.
ZEW President Professor Achim Wambach said: "Taken together, the assessment of the current situation and the economic sentiment show a positive outlook for the German economic growth in the coming six months.
"The latest figures on the gross domestic product confirm that the German economy is in good shape. ZEW indicators have been pointing to this trend for some time. The prospects for the eurozone as a whole are gradually improving, further strengthening the economic environment for German exports."
Pantheon Macroeconomics said: "Investor expectations in Germany continue to push higher, consistent with a strong rebound in eurozone equity inflows and a brightening outlook on the political stage with the contours of a strong Eurozone axis between Germany and France. The headline index continues to signal strong equity returns, but we worry that the push in EZ and German equities is vulnerable in the short run.
"The DAX 30 and MSCI EU ex-UK are up over 20% annualised year-to-date, and almost 40% since the middle of last year, a momentum we doubt will be sustained in the short run. We are believers in Mr. Macron's reform agenda, but promises don't guarantee implementation. "