German investor morale falls unexpectedly in November

German investor morale unexpectedly fell in November, the ZEW economic research institute said on Tuesday, reporting a decrease in its economic sentiment index to 38.5 points from 39.3 points in October.

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Analysts polled by Reuters had pointed to a reading of 41.

The assessment of the current economic situation fell to minus 78.7 points from minus 80.0 points in the previous month.

“The overall mood is characterised by a fall in confidence in the capacity of Germany's economic policy to tackle the pressing issues,” said ZEW president Achim Wambach.

Germany's government has approved a surge in public spending targeting defence and infrastructure, hoping to close gaps in long-neglected areas of investment while hauling the economy out of a two-year downturn.

However, the long-awaited economic revival is being constantly postponed. “Although the investment programme is likely to provide economic stimulus, the structural problems continue to exist,” Wambach said.