Key German indicator plunges to its lowest reading since January 2003

0 Comments | AFP, November, 2004

FRANKFURT (AFP) — A key indicator of near-term German economic performance plunged this month to its lowest reading since January 2003 against the backdrop of a rising euro and amid increasing signs of a cooling off in economic activity.

An index published Tuesday by the ZEW institute measuring prospects for the eurozone's largest economy in the next six months fell 17.4 points to 13.9, its fourth monthly decline and the sharpest fall since November 2002.

"The growing pessimism reflects a slowdown in the world economy and the recent surge in the value of the euro," the institute said.

Analysts had forecast a drop of just 1.3 points to 30, according to the Swiss bank UBS.

The ZEW index is now below its long-term average of 34.7 points, which means...