(MENAFN- AFP) Investor sentiment in Germany fell to its lowest level in five months in May as weaker-than-expected growth in the first quarter weighed on confidence, a leading survey found on Tuesday.
The widely watched investor confidence index calculated by the ZEW economic institute fell by a steeper-than-expected 11.4 points to 41.9 points in May, its lowest level since December 2014, ZEW said in a statement.
Analysts had been expecting a less marked decline this month to around 49.0 points.
"Financial market experts have adjusted their optimistic expectations downward in May due to unexpectedly poor growth figures in the first quarter of 2015 and turmoil on the stock and bond markets," said ZEW president Clemens Fuest.
"However, only a small number of survey participants actually expect a deterioration of the economic situation," he added.
Growth in Europe's biggest economy slowed unexpectedly in the first quarter, with first-quarter gross domestic product (GDP) expanding by a modest 0.3 percent, down from 0.7 percent in the preceding three months.
For the survey, ZEW questions analysts and institutional investors about their current assessment of the economic situation in Germany, as well as their expectations for the coming months.
The sub-index measuring financial market players' view of the current economic situation in Germany slipped by 4.5 points to 65.7 points in May. ZEW said.
A frequent criticism of the ZEW index is that it can be volatile and is therefore not particularly reliable.
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