- Achim Wambach, ZEW
The mood among German investors about the performance of the country's economy fell slightly in July. The Mannheim-based ZEW Institute reported on Tuesday that its Economic Sentiment Index for Germany dropped to 17.5, falling short of expectations for a decrease to 17.8 from May's 18.6 figure. Still, the report suggested that the outlook for the Euro zone's largest economy continued to be optimistic, with economists anticipating to see a solid economic expansion in the Q2 after growing 0.6% in the March quarter amid stronger private investments, rebounding exports and higher household spending. Meanwhile, the ZEW economic sentiment for the Euro zone's development fell to 35.6 for July, retreating from 22-month highs seen in the previous months. However, the Current Conditions Index marked a strong increase to 28.7 from 20.5 registered previously, supported by monthly improvements in expectations for both Italy and France. Overall, still strong economic expectations are set to diminish the need for the European Central Bank's expansionary monetary policy.
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