German investor expectations slump amid worries about energy supply

German investor expectations slid in July amid worries about energy supply, according to a survey released on Tuesday by the ZEW Center for European Economic Research in Mannheim.

The headline ZEW investor expectations index slumped to -53.8 from -28.0 in June, coming in well below expectations for a reading of -38.3.

Meanwhile, the current situation index declined to -45.8 in July from -27.6 the month before.

ZEW President Professor Achim Wambach said: "The current major concerns about the energy supply in Germany, the ECB’s announced interest rate hike and further pandemic-related restrictions in China have led to a considerable deterioration in the economic outlook.

"The experts assess the current economic situation significantly more negatively than in the previous month and have further lowered their already unfavourable forecast for the next six months.

"Expectations for energy-intensive and export-oriented sectors of the economy have fallen particularly sharply, and private consumption is also assessed as significantly weaker."