BRUSSELS (dpa-AFX) - German economic confidence deteriorated more than expected in October as private spending and investment remained weak due to high energy prices, survey results from the Mannheim-based Centre for European Economic Research, or ZEW, showed Tuesday.
The economic confidence index fell to a three-month low of 28.1 in October from 34.7 in the previous month. The score was forecast to drop to 30.2.
'The German economy is slowly emerging from stagnation, but the recovery is not self-sustaining,' ZEW President Achim Wambach said.
'Private consumption and investment remain weak because of high energy prices: They put real incomes under pressure, increase production costs and keep inflation higher for longer,' Wambach added.
The beginning of the fourth quarter presented a mixed sectoral picture. Banks and insurance companies registered substantial decreases in October.
The service sector and the telecommunications industry also showed contractions. In contrast, positive signals were visible in the steel and metal manufacturing sectors and in the electronics industry.
Further, the survey showed that assessment about current situation improved notably in October. The corresponding index climbed to -35.9 from -47.1 in September.
Economic sentiment in the euro area declined significantly in October. At 18.5, the confidence index dropped from 11.2 in the previous month. At the same time, the current situation index fell 0.9 points to -14.8.
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