German Economic Sentiment Unexpectedly Drops In May

A key survey of German economic sentiment pulled lower in May, with respondents pointing in part to the upcoming U.K. referendum on whether Britain should exit as a member of the European Union. The ZEW Institute's indicator of economic sentiment, released Tuesday, came in at 6.4, decreasing by 4.8 points from April. Analysts polled by FactSet had expected a reading of 12. "Uncertainties regarding developments such as a possible Brexit currently inhibit a more optimistic outlook," after strong German economic growth in the first quarter, said ZEW President Achim Wambach in a statement.