The ZEW Indicator of Economic Sentiment for Germany decreased slightly in July 2019. Expectations are now at minus 24.5 points. This corresponds to a drop of 3.4 points compared to the previous month. 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 minus 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. 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. Furthermore, no discernible progress has been made in the negotiations as to what Brexit will look like,” 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 minus 20.3 points. The indicator for the current economic situation in the eurozone fell 6.9 points to a level of minus 10.6 points in July.