Germany economy grows strong 0.5 percent in Q1

Market concerns over the European economy are showing signs of growing after a closely-watched survey of German investors recorded a sharp drop in sentiment after five straight months of increases.

The ZEW institute reported Tuesday its main index dropped by 12.6 points to a level of 10.8 in May.

ZEW says the investors believe "the outcome of the elections in Greece and France has made it more doubtful that European governments will resolutely fight the sovereign debt crisis."

ZEW president Wolfgang Franz says in light of the recessions in several eurozone countries, "it is important to pursue austerity measures with sound judgment — growth and consolidation do not contradict each other."