German investor sentiment slumps - survey

German investor sentiment weakened sharply in May, a key indicator showed today.

German investor sentiment weakened sharply in May, a key indicator showed today.

The Mannheim-based Zew institute said its German economic expectations indicator, based on a survey of 314 analysts and institutional investors, tumbled to 50 from 62.7 in April.

The reading was the lowest since November 2005 and dealt a fresh blow to hopes for a strong recovery following weaker-than-expected first quarter growth.

A separate Zew gauge of current conditions for Germany rose to 8.7 from 2.9 in April - the highest reading since March 2001.

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Economists had expected a reading of 5.6.