A key German economic indicator fell sharply in November to add to the gloomy prospects for Europe's largest economy.
The ZEW institute's expectations indicator, based on a survey of roughly 300 analysts and institutional investors, fell by 19.2 points to 4.2 in November, ZEW said today.
"The expectations indicate the economy will nosedive in the first half of 2003," ZEW president Mr Wolfgang Franz said in a statement.
The index is seen by many as foreshadowing Germany's Ifo business climate indicator, the most best-known gauge of the performance of the German and the euro zone economy.
The ZEW reading fell for the fifth straight month, to a level barely above the level of zero points, indicating that optimism for an improvement in the German economy in the next six months is rapidly fading.
The expectations index represents the balance of positive and negative estimates for the next six months.