Index points to downturn in Germany

In the economic sentiment index of the Mannheim-based ZEW economic institute published August 2006, German investor confidence plunged to its lowest level for five years, suggesting the recent strength of Europe's largest economy might soon wane.

The ZEW Indicator of Economic Sentiment is ascertained monthly. Up to 350 financial experts take part in the survey. The indicator reflects the difference between the share of analysts that are optimistic and the share of analysts that are pessimistic for the expected economic development in Germany in six months.

Centre for European Economic Research (ZEW) http://www.zew.de/en/

Centre for European Economic Research: ZEW Indicator of Economic Sentiment http://www.zew.de/en/publikationen/Konjunkturerwartungen/Konjunkturerwartungen.php3

Centre for European Economic Research: ZEW Indicator of Economic Sentiment: Press Release, 22.8.06 http://www.zew.de/en/press/639/zew-indicator-of-economic-sentiment---downward-trend-continues-

BBC News, 23.8.06: German investor confidence falls http://news.bbc.co.uk/1/hi/business/5274510.stm

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