German economic confidence improved only marginally in June, survey data from the ZEW economic research institute showed Tuesday.
The ZEW Indicator of Economic Sentiment rose slightly to 47.5 in June from 47.1 in the previous month. The reading remained below forecast of 50.0.
Assessment of current situation deteriorated in June with the index falling to -73.8 from -72.3 last month.
\"Both the sentiment and the situation indicators stagnate,\" ZEW President Achim Wambach said.
\"These developments must be interpreted in the context of a constant situation indicator for the eurozone as a whole,\" Wambach added.
Wambach observed that the inflation expectations of the respondents increase, which is likely related to the inflation rate in May, which turned out higher than what was expected.
Experts\' sentiment concerning the economic development of the euro area strengthened marginally in June. The corresponding index advanced 4.3 points to 51.3 in June.
At the same time, the current situation index held steady at 38.6, data showed.
Official data today confirmed that the euro area inflation accelerated to 2.6 percent in May from 2.4 percent rise in April, driven by services costs.