UPDATE 1-Bottlenecks drag German sentiment down for fifth month running - ZEW

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BERLIN, Oct 12 (Reuters) - The ZEW indicator of economic sentiment in Germany slipped for the fifth month in a row, the institute said on Tuesday, unveiling the latest in a string of indicators showing supply bottlenecks holding back recovery in Europe’s largest economy.

The economic sentiment index fell to 22.3 points, compared with an expected 24.0, while the current conditions sentiment fell to 21.6, a 10.3 point fall, coming in well below an expected 28.5.

“The economic outlook for the German economy has dimmed noticeably,” said ZEW President Achim Wambach, adding that the decline was “mainly due to the persisting supply bottlenecks for raw materials and intermediate products”.

Investors expected profits to decline as a result, he added, especially in the export-oriented sectors where Germany excels, such as vehicle manufacturing, chemicals and pharmaceuticals.

The volume of German exports fell in August for the first time in 15 months, the statistics office said last week, slipping unexpectedly because of the supply chain issues plaguing the global economy.

Supply chain hiccups are also being felt domestically, with an Ifo study on Tuesday finding that three quarters of retailers were experiencing supply problems. (Reporting by Thomas Escritt Editing by Riham Alkousaa)