The German ZEW indicator of investor sentiment dropped by 5.7 points in September 2011. This is the seventh decline in a row. The indicator now stands at minus 43.3 points. This value is below the indicator’s historical average of 25.6 points. A lower value of the indicator was seen last in December 2008.

The Centre for European Economic Research (ZEW - - Zentrum für Europäische Wirtschaftsforschung) in Mannheim is a nonprofit and independent institute. It was founded in 1990 on the basis of a public-private initiative in the federal State of Baden-Württemberg in co-operation with the University of Mannheim.

The ongoing debt crisis in some countries of the Eurozone as well as the fear of a global  economic downturn may have caused economic expectations to weaken. "The downward trend of economic perspectives is losing momentum this month. However, the economic outlook is characterized by a high degree of insecurity which - -  according to the financial market experts – undermines investor and consumer sentiment," says ZEW president Prof. Wolfgang Franz.

The assessment of the current economic situation in Germany is still markedly positive but has lost ground once again in September. The corresponding indicator has dropped by 9.9 points to 43.6 points.

Economic expectations for the Eurozone have decreased by 4.6 points in September. The respective indicator now stands at minus 44.6 points. The indicator for the current economic situation in the Eurozone has dropped by 8.8 points and now stands at minus 27.9 points.

Some 289 analysts participated in the September-survey which was conducted during the period 9/2-9/19/2011. Analysts were asked about their expectations for the next 6 months.