BERLIN German investor morale improved unexpectedly in June, the ZEW economic research institute said on Tuesday, but warned of persistent headwinds as export-focused sectors struggled with a weak global economy.
The institute's economic sentiment index remained in negative territory at -8.5 points, up from -10.7 points in May. A Reuters poll had pointed to a June reading of -13.1.
"Experts do not anticipate an improvement in the economic situation during the second half of the year," ZEW president Achim Wambach said.
The improvement came after three consecutive months of decline, and as Germany struggles with more persistent economic challenges after initially fending off a much-feared energy crunch in winter 2022/23.
Europe's largest economy slipped into recession in the first quarter of this year, as spending by inflation-hit consumers failed to offset other headwinds, including the abrupt end to Russian energy imports following the Ukraine invasion.
(Reporting by Rachel More; Editing by Miranda Murray)
