German Slip in Confidence Signals Slowdown After Bumper Quarter
- ZEW expectations index drops to 6.4 in May from 11.2
- First-quarter GDP growth confirmed at 0.7% on investment surge
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German investor confidence dropped for the first time in three months in a sign that growth momentum is set to slow after the economy expanded at its strongest pace in two years.
The ZEW Center for European Economic Research in Mannheim said its index of investor and analyst expectations, which aims to predict economic developments six months ahead, fell to 6.4 from 11.2 in April, reflecting concerns over a U.K. exit from the European Union. Economists in a Bloomberg survey predicted an increase to 12.