German ZEW economic sentiment indicator falls marginally to -22.8 in October

The German ZEW Indicator of Economic Sentiment saw a marginal fall in October. The index dropped 0.3 points to -22.8 points. Therefore, it remains well below the long-term average of 21.4 points. In the current October survey, the assessment of the economic situation in Germany deteriorated again, falling 5.4 points to -25.3 points. This has been the lowest reading since April 2010.

The marginal fall in the ZEW Indicator of Economic Sentiment and the situation indicator indicates that financial market experts continue to expect a further deterioration of the German economy, said ZEW President Professor Achim Wambach.

“The recent settlement in the trade dispute between the USA and China does not seem to diminish economic scepticism at this stage”, commented Achim Wambach.

Meanwhile, the ZEW Indicator of Economic Sentiment for euro area also dropped a bit in the month, with the index falling 1.1 points to -23.5 points compared to the earlier month. The indicator for the current economic situation in the euro area fell sharply by 10.8 points to a new level of -26.4 points.

Expectations of the inflation trend in the euro area are also falling significantly. In the current survey, the inflation indicator dropped 8.5 points to 1 points.