(Bloomberg) -- Investor confidence in Germany’s economy improved less than anticipated, casting doubts over the country’s rebound.

An expectations gauge by the ZEW institute rose to 47.5 in June from 47.1 in May. While that’s the 11th monthly increase, it falls short of the 50 forecast in a Bloomberg survey. A measure of current conditions fell slightly, defying a predicted uptick. 

“Both the sentiment and the situation indicators stagnate,” ZEW President Achim Wambach said in a statement. “These developments must be interpreted in the context of a constant situation indicator for the eurozone as a whole.”

After two years of near-stagnation, Europe’s largest economy expanded by more than anticipated at the start of 2024 and is widely expected to continue to gradually expand. But there’s still a lot of uncertainty and the manufacturing sector has proved to be a weak spot. 

The Bundesbank forecasts the German economy to slowly gain momentum in 2024, followed by stronger growth in the years ahead. Real gross domestic product will increase by 0.3% this year, with growth accelerating to 1.1% in 2025 and 1.4% in 2026, it said at the start of June.  

Still, at least some economists argue that there are indications that the moderate recovery is already coming to an end and that a renewed phase of stagnation is imminent. Industry data disappointed in April, suggesting a poor start to the second quarter.

--With assistance from Joel Rinneby and Kristian Siedenburg.

©2024 Bloomberg L.P.