Germany's economic sentiment indicator sinks to -14.7 pts

The financial market experts’ sentiment concerning the economic development of the eurozone slightly worsened in July and currently stands at -12.2 points, 2.2 points below the previous month’s value, ZEW said in a press release.

The situation indicator for the eurozone decreased, dropping 2.5 points to a new reading of -44.4 points.

“The ZEW Indicator of Economic Sentiment is shifting even more noticeably into negative territory. Financial market experts predict a further deterioration in the economic situation by year-end. A key reason for this is the expectation of rising short-term interest rates in the eurozone and the US. Additionally, important export markets like China are seen as relatively weak. The industrial sectors are likely to bear the brunt of the anticipated economic downturn, with profit expectations for these export-oriented industries experiencing a substantial decline once again,” said ZEW president professor Achim Wambach.

ALCHEMPro News Desk (NB)