German investor morale continues to decline following fears over fourth wave of COVID-19

BERLIN, Aug. 10 (Reuters) – Investor sentiment in Germany deteriorated for the third month in a row in August, fearing that an increase in COVID-19 infections and a fourth wave of coronavirus cases could dampen the recovery in Europe’s largest economy, according to a survey on Tuesday.

Economic research institute ZEW said its survey of investor economic sentiment fell to 40.4 points from 63.3 points the previous month. A Reuters poll predicted a drop to 56.7.

“This indicates growing risks to the German economy, such as a possible fourth wave of COVID-19 from the fall or slower growth in China,” ZEW chairman Achim Wambach said in a statement. .

A ZEW gauge separate from current conditions rose to 29.3 from 21.9 in July. This compares to a consensus forecast of 30.0 points.

“The marked improvement in the assessment of the economic situation, which has been going on for months, shows that expectations are also weakening due to the higher growth already achieved,” Wambach added. (Report by Michael Nienaber edited by Madeline Chambers)