MANNHEIM, Germany, July 15 (Reuters) - Political instability in the Middle East was behind July’s drop in sentiment among German analysts and investors, an economist at ZEW said on Tuesday after the think-tank reported a seventh consecutive fall in its monthy survey of morale.
“If such conflicts, if such political risks would be lower or would vanish over time, we would again see an increase in the expectations. It’s currently not driven by main economic risks,” said economist Michael Schroeder.
Earlier, Mannheim-based ZEW said its survey for July fell to its lowest level in 1-1/2 years at 27.1, below a 28.0 consensus forecast in a Reuters poll. (Reporting by Paul Carrel and Andreas Framke; Writing by Stephen Brown)