Germany Economic Sentiment Continues To Weaken: ZEW
16 July 2019 - 6:26PM
RTTF2
Germany's investor sentiment continued to weaken in July as
US-China trade disputes and Iran conflicts weighed on financial
market experts' confidence, survey data from the ZEW-Leibniz Centre
for European Economic Research showed on Tuesday.
The economic confidence index declined for the third straight
month in July, to -24.5 from -21.1 in June. This was the lowest
score since October 2018 and weaker than the expected -22.
The current conditions index fell to -1.1 in July from +7.8 in
June. The score turned negative for the first time since mid-2010.
The expected level for July was +5.
"In particular the continued negative trend in incoming orders
in the German industry is likely to have reinforced the financial
market experts' pessimistic sentiment," ZEW President Achim Wambach
said.
"A lasting containment of the factors that are causing
uncertainty in the export-oriented sectors of the German economy is
currently not in sight."
The Iran conflict seems to be intensifying and the ongoing trade
dispute between the USA and China is a burden not only to Chinese
economic development, Wambach noted.
Furthermore, ZEW President observed that no discernible progress
has been made in the negotiations as to what Brexit will look
like.
The economy ministry on Monday said industrial activity is set
to remain sluggish amid moderating foreign demand, and the service
sector growth is likely to lose steam, suggesting that economic
trends in the biggest euro area economy will be weak in the second
quarter.
ZEW survey also showed that the financial market experts'
sentiment concerning the economic development of the euro area
weakened slightly. The corresponding index dropped 0.1 points to
-20.3 in July.
At the same time, the current conditions index fell 6.9 points
to -10.6.
Euro vs US Dollar (FX:EURUSD)
Forex Chart
From Apr 2024 to May 2024
Euro vs US Dollar (FX:EURUSD)
Forex Chart
From May 2023 to May 2024