(Reuters) - German analyst and investor sentiment unexpectedly worsened in July, reflecting economic tensions in the euro zone and a global slowdown that is hitting exports, a survey showed on Tuesday.
The Mannheim-based ZEW economic think tank's monthly poll of economic sentiment fell to 36.3 from 38.5 in June, well below the consensus forecast in a Reuters poll of analysts for a rise to 39.6.
The reading sent the euro lower against the dollar and safe-haven Bundfutures to a session high.
"The ZEW index turned out surprisingly bad. That is not a good sign for the euro zone and shows that not everything in Germany is as rosy as people think," said Sebastian Sachs at Metzler Bank.
Economists said a slowdown in China was particularly worrying for Germany's traditionally export-driven economy, which until recently has managed to offset weaker demand in Europe, struggling with its debt crisis, with stronger sales in emerging markets.
A bastion of strength in the early years of the euro zone crisis, the German economy shrank in late 2012 and had a subdued start to 2013, narrowly avoiding a recession. The recent picture has been mixed.
Exports fell the most since late 2009 in May, hit by weaker demand in Europe and now in China, too. Industrial orders and output tumbled.
Bosch ROBG.UL said on Tuesday it had cut the working hours of about 1,800 employees in Germany in response to weak demand for industrial and building technology.
Reuters
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