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The institute's index that measures expectations for economic growth rose to 41.9 in July from 21.3 in June, gaining for a seventh month.
The institute's index that measures expectations for economic growth rose 2.6 points, to 21.3 points, the sixth consecutive monthly rise, which exceeded by far most forecasts by economists.
A crucial component of the index, which measures expectations for the future, showed a level not seen since Germany tumbled into recession in the early 1990s, after reunification.
The Present Situation Index, which measures how consumers feel about current conditions, dropped to 25.5 in June, from 29.8 in May, while the Expectations Index, which measures expectations for the next six months, declined to 71.2 from 84.6.
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The index, which measures investors' expectations for the economy in six months' time, has fallen for eight consecutive months.
The index that measures consumer expectations for the next six months dropped to 106.2, the lowest level since October, amid higher oil and gasoline prices and volatile stocks.
The ZEW index, which measures investors' expectations for the economy in six months' time, has fallen for eight consecutive months amid weak growth in the eurozone overall – the UK's biggest trading partner.
The index that measures consumer expectations for the next six months also dropped, to its lowest level since October, after the most recent increase by the Federal Reserve in short-term interest rates, the fifth since June.
The Center for Economic Research's monthly index, which measures investors' expectations for Germany's economy over the next six months, dropped to negative 63.9 in July from negative 52.4 in June, the group said.
For example, in late 2008, at the height of the financial panic, the Chicago Board Options Exchange Volatility Index, or VIX — which measures investor expectations for market volatility — rose to a record level of more than 80.
Meanwhile, Germany's investor confidence dropped to -52.4 points in June, from -41.4 in May, amid soaring food and oil prices and fears of an upcoming interest rate rise, according to the ZEW institute's monthly index, which measures investors' expectations for the German economy over the next six months.
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