- ZEW
German investor confidence declined for the first time in three months in a sign that the Euro zone's number one economy is set to slow after growing at its strongest pace in two years. The ZEW Center for European Economic Research said its index of investor and analyst expectations, which aims to predict economic developments six months ahead, plunged to 6.4 from 11.2 in April, reflecting concerns over a Britain's exit from the European Union. The current situation sub-indicator came in at 53.1 in the reported month, climbing from April's 47.7 and compared with analysts' forecast of 49.0 points.
Additionally, data from the Federal Statistics Office confirmed Europe's largest economy expanded 0.7% in the first quarter on the back of an investment surge, compared with the final quarter of 2015, when the German economy added just 0.3%. In the January-March period, German growth was supported by a 2.3% advance in construction that pushed up capital investment by 1.8%. Private consumption climbed 0.4%. Investment contributed 0.4 percentage point to growth in the reported period, with consumer spending adding 0.2 point and government consumption 0.1 point. In contrast, net trade subtracted 0.1 percentage point from GDP expansion as imports outpaced exports.
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