German investor morale plummets in June

MANNHEIM, Germany, June 17 Tue Jun 17, 2014 5:19am EDT

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MANNHEIM, Germany, June 17 (Reuters) - German analyst and investor morale dropped in June for a sixth straight month to its lowest level in about 1-1/2 years, a leading survey showed on Tuesday in a sign that second-quarter growth in Europe's biggest economy may weaken.

Mannheim-based think tank ZEW's monthly survey of economic sentiment fell to 29.8 from 33.1 in May, falling well short of the consensus forecast in a Reuters poll for a rise to 35.0.

A separate gauge of current conditions increased to 67.7 from 62.1 points in May to its highest level since July 2011, overshooting the consensus forecast for a reading of 62.6.

"The German economy is currently in a very good shape, but further increases are becoming more difficult," said ZEW president Clemens Fuest.

"We had a strong first quarter in 2014 due to favourable weather conditions, but signs are that the second quarter will be weaker."

The index was based on a survey of 234 analysts and investors conducted between June 2 and 16, ZEW said. (Reporting by Michelle Martin and Harro Ten Wolde; Writing by Madeline Chambers; Editing by Stephen Brown)

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