German investor morale worsened in November to its weakest since February 1993, a survey showed today.
The ZEW research institute said its economic sentiment indicator, based on a survey of 269 analysts and institutional investors, fell to -32.5 this month from -18.1 in October. A Reuters survey of economists had pointed to a reading of -20.0.
"German business expectations are imploding right now, a trend that the ECB must wake up to very soon," said David Brown at Bear Stearns. "The ECB needs to switch the policy bias away from upside inflation to downside growth risks."
The European Central Bank left interest rates on hold at 4 per cent for the fifth month in a row last week and vowed to keep a grip on inflation.
A separate ZEW gauge of current conditions for Germany fell to 70 this month from 70.2 in October. The consensus forecast was for a reading of 68. A measure of expectations for the euro region fell to -30.0 after -19.0 the previous month.
The survey was conducted between October 29th and November 12th.