German investor confidence for the next six months fell due to an uncertain world economy outlook, the Mannheim-based ZEW Center for European Economic Research said on Tuesday.
The index now stands at 3.4 points, dropping 4.5 points from April, 2011.
At the same time the assessment of the current economic situation in Germany has reached an all-time high, reaching 91.5 points, said ZEW, echoing the 5.2 percent of the first quarter growth published by German Federal Statistics Office last Friday.
ZEW said financial market experts consider a further increase of the economic momentum to be unlikely.
"Moreover, mixed signals regarding the state of the U.S. economy as well as a weaker outlook for the Chinese economy might have dampened expectations," ZEW said.
"It came as a surprise that the German economy recovered from the crisis that quickly. This strong dynamic is not going to last undamped. Also, risks, such as the crisis in the eurozone and global economic imbalances, should be recognised," said ZEW President Wolfgang Franz.
The German stock market suffered a plunge on Tuesday as the benchmark DAX index of 30 big companies lost 130.89 points or 1.77 percent to 7,256.65 at close./.