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ZEW economic sentiment indicator for Germany falls sharply in August
The ZEW Indicator of economic sentiment for Germany dropped sharply again in August. The economic sentiment index stands at -44.1 points, a fall of 19.6 points from the prior month. The indicator’s long-term average is 21.6 points. The ZEW indicator of Economic Sentiment is thus at its lowest level since December 2011. Over the same period, the assessment of the economic situation in Germany exacerbated significantly by 12.4 points, with the corresponding indicator dropping to a current reading of -13.5 points in August.
Today’s indicator points to a considerable deterioration in the outlook for the Germany economy, said ZEW President Professor Achim Wambach.
“The most recent escalation in the trade dispute between the US and China, the risk of competitive devaluations, and the increased likelihood of a no-deal Brexit place additional pressure on the already weak economic growth. This will most likely put a further strain on the development of German exports and industrial production”, commented Achim Wambach.
Meanwhile, the ZEW Indicator of economic sentient for the euro area also saw a considerable fall, bringing the indicator to a current level of -43.6 points, falling 23.3 points from the prior month. The indicator for the current economic situation in the euro area dropped 3.9 points to -14.5 points in August.