ZEW Indicator of Economic Sentiment for Germany slumps 25.8 points

The current major concerns about the energy supply in Germany, the ECB’s announced interest rate hike and further pandemic-related restrictions in China have led to a considerable deterioration in the economic outlook. The experts assess the current economic situation significantly more negatively than in the previous month and have further lowered their already unfavourable forecast for the next six months.

“Expectations for energy-intensive and export-oriented sectors of the economy have fallen particularly sharply, and private consumption is also assessed as significantly weaker,” ZEW president professor Achim Wambach said in a press release.

The financial market experts’ sentiment concerning the economic development of the euro zone plunged by 23.1 points in July and currently stands at minus 51.1 points. The situation indicator fell to a new level of minus 44.4 points, dropping 18 points compared to June 2022.

Inflation expectations for the euro zone rose by 6.8 points in the current survey. With a value of minus 25.6 points, the indicator remains clearly in negative territory.

ALCHEMPro News Desk (KD)