German ZEW economic sentiment negatively surprises in May

The German business morale deteriorated in May, following two straight months of increases, a ZEW survey showed on Tuesday.

The headline ZEW economic sentiment surprised markets to the downside, coming in much weaker at 6.4 points in May as compared to April’s 11.2 points and way below markets’ expectations of an acceleration to 12.1.

The current situation sub-index, however, ticked higher to 53.1 in May, compared from April’s 47.7 and above forecast of 49.0 points.