Following fading prospects in the nation's retail, consumer goods, steel and chemical sectors, German investor confidence dipped for the fifth month in February as stated by a survey on Tuesday.

Investors' outlook for the next six months declined to 45.1 points from 47.2 points in January according to the confidence index. This deterioration of investor's confidence points out the fact that not much is being gained on economic recovery.

ZEW President Wolfgang Franz said in the report, "Economic activity is likely to move sideways, with only minor ups and downs. Though we have passed through the deepest valleys of the depression, the worries about the labor market, budget deficits and the euro have not lessened".

Carsten Brzeski, an analyst at ING said, "The ZEW index's drop indicates a further adjustment of financial analysts' expectations of the economic outlook. Today's correction of the ZEW indicator reflects the return of risk aversion in financial markets and the fiscal problems in Greece and other euro zone countries. Still, the pure macro-economic impact from Greece on the German economy through the trade channel can be neglected. Exports to Greece account for less than 1 percent of total German exports".

According to the ZEW the economic expectations in the 16 countries that share the euro currency decreased to 40.2 points from 46.4 points in January. This loss probably is because of concerns over enlarging budget shortage in Greece and other weak economies in the region.