German investor sentiment collapses in March - ZEW

(Sharecast News) - German investor sentiment deteriorated significantly in March, according to a survey released on Tuesday by the ZEW Center for European Economic Research in Mannheim. The ZEW current situation index improved to -62.9 from -65.9 in February, but the indicator of economic sentiment tumbled to -0.5 in March from 58.3 the month before. Economists were expecting a much smaller decline to 38.5.

ZEW President Achim Wambach said: "The ZEW Indicator has collapsed. The escalation in the Middle East spikes energy prices and increases inflationary pressure. This heightens the risk for the German economy that the emerging trend of economic recovery will slow down.

"How strong these effects will turn out depends on the intensity and the duration of the conflict. The financial market experts are sceptical that a quick resolution of the conflict will take place."