BERLIN, October 12 Reuters - The ZEW indicator of economic sentiment in Germany has slipped for the fifth month in a row, the institute said on Tuesday, unveiling the latest in a string of indicators showing supply bottlenecks holding back recovery in Europe's largest economy.
The economic sentiment index declined to 22.3 points, compared with expected 24.0, while the current conditions sentiment fell to 21.6, a 10.3 point fall, coming in well below the expected 28.5.
The outlook for the German economy has dimmed markedly, said ZEW President Achim Wambach, adding that the decline was mainly due to the persistent supply bottlenecks for raw materials and intermediate products. Investors expected profit to decline as a result, he added, particularly in the export-oriented sectors where Germany excels, such as vehicle manufacturing, chemicals and pharmaceuticals.
The volume of Germany exports was the first in 15 months, the statistics office said last week, fell unexpectedly in August because of the supply chain issues plaguing the global economy.
Supply chain hiccups are also being felt domestically, with an Ifo study on Tuesday showing that three quarters of retailers were experiencing supply difficulties.