German ZEW improves in June but remains in negative territory

German investor sentiment improved in June but remained in negative territory, according to a survey released on Tuesday by the ZEW Center for European Economic Research in Mannheim.

The headline ZEW investor expectations index rose to -28.0 from -34.4 in May, coming in just a touch below consensus expectations for a reading of -27.5.

Meanwhile, the current situation index rose to -27.6 in June from -36.5 the month before.

ZEW President Professor Achim Wambach said: "Financial market experts are less pessimistic about the economy. However, the economy is still exposed to numerous risks, such as the effects of the sanctions against Russia, the unclear pandemic situation in China and the gradual change of course in monetary policy. So although expectations have improved, they are still deep in negative territory."

Jack Allen-Reynolds, senior Europe economist at Capital Economics, said: "A second consecutive small monthly rise in the ZEW measure of German investor sentiment in June means it was still well below its level at the start of the year, and pointing to a recession.

"The Sentix sentiment index for June paints a similarly downbeat picture for the euro-zone as a whole."