German investor confidence fell by more than expected to its lowest level in 16 months in October amid concern about rising oil prices and a slowdown in global growth, the ZEW research institute said today.
In its monthly gauge of investor morale, the Mannheim-based think tank said its expectations indicator, based on a survey of 297 analysts and institutional investors, dropped for a third consecutive month to 31.3 from 38.4 in September.
Data released last week showed Germany's trade surplus shrank in August to its lowest level in eight months, while industrial orders and output fell significantly for the second month in three months amid slackening foreign demand for goods.
Germany's economy grew by 0.5 per cent in the second quarter, its fastest rate in three years, but was driven almost entirely by net exports.
Nevertheless, ZEW's gauge of current conditions in Germany rose to -58.9 from -61.5 in September, above economists' expectations of an increase to -60.0.
ZEW's measure of expectations for the 12-nation euro zone fell to 37.6 from 44.7.