MANNHEIM--German economic expectations in June fell at the fastest rate in more than a decade, reflecting the view that Greek repeat parliamentary elections only provided a brief respite and that the situation in the euro zone is "still precarious," the Center for European Economic Research, also known as ZEW, said Tuesday.
The economic expectations index fell to -16.9 in June from May's unrevised 10.8. The last time the decline in the indicator was this great was in October 1998. Experts in a poll by Dow Jones Newswires had expected a fall to 2.8 for June.
The widely watched ZEW index fell again in June after improving sharply in recent months. After declining for nine months on the deepening of Europe's sovereign debt crisis, the index turned negative in June after turning positive in February.
ZEW said the decline is a warning that optimism over Germany's economy is still premature as its main trading partners are experiencing an economic downturn.
The current conditions index fell to +33.2 from May's unrevised 44.1. Experts had forecast a reading of 39.0 for June.