By Maria Martinez
BERLIN (Reuters) -German investor morale unexpectedly fell in November, the ZEW economic research institute said on Tuesday, reporting a decrease in its economic sentiment index to 38.5 points from 39.3 points in October.
Analysts polled by Reuters had pointed to a reading of 41.
The assessment of the current economic situation fell to minus 78.7 points from minus 80.0 points in the previous month.
“The overall mood is characterised by a fall in confidence in the capacity of Germany’s economic policy to tackle the pressing issues,” said ZEW president Achim Wambach.
Germany’s government has approved a surge in public spending targeting defence and infrastructure, hoping to close gaps in long-neglected areas of investment while hauling the economy out of a two-year downturn.
However, the long-awaited economic revival is being constantly postponed.
“Although the investment programme is likely to provide economic stimulus, the structural problems continue to exist,” Wambach said.
The score is based on a survey that is sent to about 350 analysts at German banks, insurers and industrial companies. Within a range of minus 100 to plus 100, it measures expectations on the country’s future economic development.
(Reporting by Ludwig Burger, Editing by Friederike Heine and Miranda Murray)
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