German economic confidence dented by oil hikes

The ZEW economic research has fallen for the fifth month in a row to its lowest level since July 2003.

The leading measurer of economic confidence in Germany said there were persistent doubts about Germany's ability to get back on track.

The ZEW's economic expectations index slipped by 3.3 points to plus 46.4 points in May, which was more than analysts has anticipated.

Rising oil prices, higher interest rates and persistently weak domestic demand were the main factors behind the increasing recovery doubts, ZEW president Wolfgang Franz said today.