BERLIN, July 16 Reuters German investor morale worsened more than expected in July, falling for the first time in a year and showing that recovery in the euro zone39;s largest economy will be bumpy.

The economic sentiment index fell to 41.8 points from 47.5 points in June, the ZEW economic research institute said on Tuesday. Analysts polled by Reuters had pointed to a July reading of 42.3.

The economic outlook is worsening, said ZEW president Achim Wambach, attributing the decline to a fall in exports in May, political uncertainty in France and a lack of clarity about the European Central Bank39;s future monetary policy.

By contrast, the assessment of the economic situation in Germany slightly improved, with the indicator rising to minus 68.9 from minus 73.8 in the previous month.

Reporting by Miranda Murray and Maria Martinez; Editing by Madeline Chambers

Source Reuters