Investor Confidence in Germany Falls Significantly
ZEW Index Shows Decline After EU-US Trade Agreement and Weak Growth
Claus Hansen
The optimism that characterised July has turned to concern among German investors. The August figures from the ZEW index show a significant drop to 34.7 - down from 52.7 the previous month.
The ZEW index is compiled by the German research institute Zentrum für Europäische Wirtschaftsforschung, which each month asks around 350 financial experts and investors about their expectations for the economy over the next six months. The index serves as an important barometer for sentiment in the financial markets.
The assessment of the current economic situation has also deteriorated. The situation index has fallen from -59.5 to -68.6. Thus, pessimism has returned after several months of gradual improvements.
According to ZEW Chairman Achim Wambach, the decline is driven by disappointment over the trade agreement between the EU and the USA, as well as weak growth in the German economy in the second quarter. Several key sectors - including chemicals, pharmaceuticals, machinery production, and the automotive sector - are already feeling the uncertainty.
Buy a subscription and get access
Already a subscriber? Log in here
Personal Subscription
-
Premium access to all content on FemernBusiness
-
Unlimited access to our full archive
-
Newsletters with the most important industry updates
-
Breaking news alerts when the biggest stories happen
-
Website login – stay updated with industry news on the go
Buy subscription
Try FehmarnBusiness for free for 14 days
-
Premium access to all content on FemernBusiness
-
Unlimited access to our full archive
-
Newsletters with the most important industry updates
-
Breaking news alerts when the biggest stories happen
-
Website login – stay updated with industry news on the go
Start free trial
