German ZEW falls more than expected

German investor sentiment about the outlook for Europe's largest economy worsened more than expected in August, a closely watched…

German investor sentiment about the outlook for Europe's largest economy worsened more than expected in August, a closely watched survey showed today.

The Mannheim-based ZEW economic research institute said its economic sentiment indicator, based on a survey of 291 analysts and institutional investors, fell to -6.9 this month from 10.4 in July amid the crisis in the US subprime mortgage market.

The mid-range forecast survey of 48 economists polled last week was for an August reading of -1.0, with forecasts ranging from 10.4 to -20.0.

A separate gauge of current conditions for Germany fell to 80.2 this month from 88.2 in July.

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The consensus forecast was for a reading of 85.0. A measure of expectations for the euro region fell to -6.1 after 7.2 the previous month, the ZEW said.