German Economic Sentiment Eased in December -ZEW Survey

By Nina AdamFeaturesDow Jones Newswires

German economic sentiment eased in December as Europe's largest economy struggles to forge a new government.

The ZEW think tank said Tuesday that its measure of economic expectations dropped to 17.4 points from 18.7 points in November. The outcome fell short of economists' forecasts of 18.1 points.

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While the roughly 200 financial analysts and investors polled by the ZEW remained generally optimistic about Germany's near-term economic outlook, they were concerned that long-drawn talks to form a governing coalition in Germany could hurt progress in Brexit negotiations and E.U. reforms, said Achim Wambach, the ZEW's president.

Germany continues to be run by a caretaker administration more than two months after an election that yielded no clear majority.

Write to Nina Adam at nina.adam@wsj.com

(END) Dow Jones Newswires

December 12, 2017 05:58 ET (10:58 GMT)