The German ZEW economic sentiment index again shows a sharp decline in August 2019. Expectations for this indicator have reached -44.1. This drop represents a 19.6 unit drop from the previous month. Therefore, the ZEW economic sentiment index is at its lowest level since December 2011. Germany's economic situation has also deteriorated by 12.4 points.
Euro-zone financial market sentiment has also fallen sharply to 43.6 points, down 23.3 points from the previous month.
“The ZEW Indicator of Economic Sentiment points to a significant deterioration in the outlook for the German economy. 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,” comments ZEW President.