Brexit fears spook German investors in May

Investor confidence in Germany fell unexpectedly in May as uncertainty over a possible exit by Britain from the European Union overshadows better-than-expected economic data, a leading survey showed on Tuesday.

The investor confidence index calculated by the ZEW economic institute decreased by 4.8 points to 6.4 points in May, the think tank said in a statement.

Analysts had projected a slight increase in the index this month to around 12 points. 

"The strong growth of the German economy in the first quarter of 2016 appears to have surprised the financial market experts. However, they seem not to expect the economic situation to improve at the same pace going forward," said ZEW president Achim Wambach.

"Uncertainties regarding developments such as a possible 'Brexit' currently inhibit a more optimistic outlook," he said. 

Britain goes to the polls on June 23 to decide whether to remain in the European Union.

For the survey, ZEW questions analysts and institutional investors about their current assessment of the economic situation in Germany, as well as their expectations for the coming months.

The sub-index measuring financial market players' view of the current economic situation in Germany increased by 5.4 points to 53.1 points in May, ZEW said.