German ZEW confidence index sags on Ukraine fears

AP News
Posted: Aug 12, 2014 5:43 AM

FRANKFURT, Germany (AP) — Germany's ZEW indicator of confidence among professional investment analysts sagged to a 20-month low in August.

The ZEW institute said Tuesday its index fell to 8.6 from 27.1. Market observers had expected a fall to only 17.0.

Fears about a possible escalation of the crisis in Ukraine have weighed on Germany business confidence in recent weeks.

Analyst Christian Schulz at Berenberg bank said the slump confirms "near-term downside risk" from the Ukraine crisis "but does not change the fundamentally positive outlook" for Germany and the 18-country eurozone as a whole.

Some analysts think that Germany's economy, Europe's biggest, was flat in the second quarter that ended June 30 but is picking up in the third quarter.

Official second-quarter figures are out Thursday.