(Bloomberg) -- A surge in market volatility took a toll on German investor confidence in February, damping the level of optimism.
The ZEW Center for European Economic Research in Mannheim said on Tuesday that its index of investor expectations declined to 17.8 from 20.4 in January. Economists in a Bloomberg survey predicted a drop to 16.
While a slide in global equity prices dragged down Germany's benchmark stock index by as much as 11 percent in the past weeks, the country's economy has been enjoying a strong run, supported by domestic spending and solid global trade. The Bundesbank says the expansion is booming, and industry continues to constitute a driving force of the upswing.
Bundesbank President Jens Weidmann has said the market fluctuations shouldn't be a cause for concern.
“The latest survey results continue to show a positive outlook for the German economy,” ZEW President Achim Wambach said in a statement. “The assessment of the current economic situation is still on a very high level and the economy is expected to improve in the coming six months.”
ZEW's measure for current conditions in Germany slid in February to 92.3 from 95.2. Expectations in the euro area decreased to 29.3 from 31.8.
--With assistance from Andre Tartar and Kristian Siedenburg
To contact the reporter on this story: Carolynn Look in Frankfurt at clook4@bloomberg.net.
To contact the editors responsible for this story: Paul Gordon at pgordon6@bloomberg.net, Jana Randow
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