German ZEW index slides unexpectedly in August

BERLIN Tue Aug 14, 2012 2:39pm IST

BERLIN Aug 14 (Reuters) - German analyst and investor sentiment dropped for a fourth straight month in August, undercutting even the lowest forecast in a Reuters poll, a survey showed on Tuesday.

The Mannheim-based ZEW economic think tank's monthly poll of economic sentiment slid to -25.5 from -19.6 in July, compared to a median forecast in a Reuters poll of 38 for an unchanged reading. The forecasts in the poll had ranged from -10.0 to -25.0.

"The indicator's decline in August signals that financial market experts still expect the German economy to cool down throughout the next six months. Especially export-oriented sectors may be affected," ZEW said.

Earlier on Tuesday, preliminary data showed German economic growth slowed to 0.3 percent in the second quarter of the year.

The index was based on a survey of 262 analysts and investors and conducted between July 30 and August 13, ZEW said.