German economic sentiment deteriorated in August due to ambiguous financial policy, disappointing insights into the US economy and escalating conflicts in the Middle East, the effects of a survey by ZEW bank showed on Tuesday.
The ZEW economic weather indicator fell sharply from 22. 6 numbers to 19. 2 from 41. 8 in July. The last time expectations deteriorated in this way was in July 2022.
This is the second straight drop and is less than economists’ forecasts of 30. 6.
The assessment of the current economic situation also deteriorated in August. The corresponding indicator fell from 8. 4 points to -77. 3 points.
“Economic expectations will most likely continue to be affected by high uncertainty, driven by ambiguous financial policy, disappointing knowledge of the U. S. economy, and developing considerations about an escalation of the conflict in the Middle East,” Wambach said.
The survey showed that money market experts’ sentiment on the euro’s progression recorded its biggest drop since April 2020. The economic sentiment index plunged 25. 8 points to 17. 9 in August.
However, the existing index advanced 3. 7 numbers to -32. 4 in August.