German Economic Confidence Weakens In November

(RTTNews) - German economic confidence weakened moderately in November as investors became concerned about the ability of economic policies to address its key issues, a monthly survey conducted by the think tank ZEW showed Tuesday.

The economic sentiment index fell unexpectedly to 38.5 in November from 39.3 in the previous month. The reading was forecast to rise to 41.0.

Similarly, the current situation indicator climbed to -78.7 from -80.0 in the prior month. However, the reading was weaker than forecast of -77.5.

"The ZEW indicator of economic sentiment remains stable," ZEW President Achim Wambach said.

"But the overall mood is characterised by a fall in confidence in the capacity of Germany's economic policy to tackle the pressing issues," Wambach.

"Although the investment programme is likely to provide economic stimulus, the structural problems continue to exist," he added.

Investor confidence in the euro area improved in November. The economic sentiment index climbed to 25.0 from 22.7 in the previous month.

Assessment about the current situation also strengthened in November. The corresponding index rose 4.5 points to -27.3.