Germany: ZEW indicator of economic sentiment decreased slightly in July

According to the report from Center for European Economic Research (ZEW), indicator of economic sentiment for Germany decreased slightly in July 2019. Expectations are now at -24.5 points. This corresponds to a drop of 3.4 points compared to the previous month. Economists had expected a decrease to -22.3 points. The indicator’s long-term average is 21.8 points. In July, the assessment of the economic situation in Germany worsened by 8.9 points, with the corresponding indicator falling to a current reading of -1.1 points.

“In particular the continued negative trend in incoming orders in the German industry is likely to have reinforced the financial market experts’ pessimistic sentiment. A lasting containment of the factors that are causing uncertainty in the export-oriented sectors of the German economy is currently not in sight,” comments ZEW President Professor Achim Wambach.

The financial market experts’ sentiment concerning the economic development of the eurozone has slightly decreased, with the corresponding indicator falling 0.1 points to a current level of -20.3 points. The indicator for the current economic situation in the eurozone fell 6.9 points to a level of -10.6 points in July.