Scepticism returns on German economic recovery

Analysts and institutional investors' optimism in the German economy fell slightly in February as concerns over the appreciating euro currency continued.

The ZEW Indicator reported a drop to +69.9 points from January's +72.9.

Experts appear to be concerned about the lasting strength of the euro, as it could affect corporate profits in the long term.

The evaluation of Germany's current economic situation rose marginally in February. 72.2% from January's 78.2% described economic conditions there as poor.

More than 56% of those interviewed regarded the current economic situation in the Eurozone region as a whole as poor.

308 analysts and institutional investors participated in February's ZEW Financial Markets, a monthly survey conducted by the Centre for European Economic Research (ZEW), in Mannheim.

Participants were asked about their medium-range expectations concerning economic activity and capital markets.

The ZEW Indicator of Economic Sentiment shows the balance between positive and negative expectations regarding future economic activity in Germany within a time-frame of six months.