German investor sentiment deteriorates in March - ZEW

German business sentiment deteriorated more than expected in March amid concerns about the banking crisis, according to a survey released on Tuesday by the ZEW Center for European Economic Research in Mannheim.

The headline ZEW investor expectations index fell to 13.0 from 28.1 a month earlier. Economists had been expecting a decline to 17.1.

Meanwhile, the current conditions index dipped 1.4 points to -46.5.

ZEW President Achim Wambach said: "The international financial markets are under strong pressure. This high level of uncertainty is also reflected in the ZEW indicator of economic sentiment.

"The assessment of the earnings development of banks has deteriorated considerably, although it still remains slightly positive. The estimates for the insurance industry have also declined significantly."

Pantheon Macroeconomics said that overall, the message from the ZEW survey is still upbeat. "The expectations index reversed only a fifth or so of its increase since the trough in September and the current conditions index remains close to recent highs," it said.