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Finance

German investor morale falls more than expected in January, survey finds

Published by Global Banking and Finance Review

Posted on January 21, 2025

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By Maria Martinez

BERLIN (Reuters) - German investor morale fell more than expected in January, the ZEW economic research institute said on Tuesday, as the German economy contracted for the second consecutive year.

The economic sentiment index fell to 10.3 points from 15.7 points in December. Analysts polled by Reuters had pointed to a reading of 15.3.

"A lack of private household spending and subdued demand in the construction sector continue to stall the German economy," ZEW president Achim Wambach said. "If these trends continue in the current year, Germany will fall further behind the other countries of the euro zone."

The assessment of the current economic situation in Germany however, changed only slightly, with the indicator rising to minus 90.4 point from minus 93.1.

(Reporting by Maria Martinez, Writing by Miranda Murray and Ludwig Burger, Editing by Rachel More)