German investor confidence down again in December

BERLIN, Dec. 15 (Xinhua) — Germany’s declining investor confidence fell again in December, according to a key indicator released by the ZEW Center for European Economic Research on Tuesday.

The ZEW Indicator of Economic Sentiment for Germany decreased slightly by 0.7 points in December 2009, standing at 50.4 points from 51.1 points in the previous month.

This indicates financial experts are still reckoning on a slow economic recovery. Their optimism, on the one hand, may result from rising exports. On the other hand, investment demand seems to have plateaued.

“We are still at the bottom of a recession. Next year, we will see a recovery, but not an economic upswing. The recovery is mainly driven by exports. How strong investments will contribute to economic growth in 2010 depends on bank lending. Banks, however, still face the difficult task of cleaning up their balance sheets,” said ZEW President Prof. Wolfgang Franz.

Although the indictor had now fallen for two months straight, it remained well above the indicator’s historical average of 27 points, said the ZEW Center.

http://english.china.com/zh_cn/business/news/11021613/20091216/15738729.html

Related Posts:

• I own a business. I see first hand what the recession has done to people’s spending habits.
• Caution: Small Ponzi scheme is everywhere.
• California Watch: Will California Default on Bond Debt in 2010?
• China’s economy to expand 8.5% this year, report forecasts
• Roubini: Economic Recovery to Be ‘Very Ugly’

Leave a comment