The ZEW Institute’s measure of economic sentiment for Germany declined by 4.2 points this month to 22.3 points, the lowest since March 2020 during the first COVID-19 lockdown.
- The index of investor confidence has dropped for five straight months, as the assessment of the economic situation in Germany has deteriorated since a sharp start earlier this year.
- ZEW President Professor Achim Wambach stated that the economic outlook for the German economy had dimmed significantly. The further decline in the Economic Sentiment Index is attributable to persisting supply bottlenecks for raw materials and intermediate products.
- Wambach further stated that the financial market anticipates a decline in profits, more so in export-oriented sectors such as vehicle manufacturing and chemicals.
- The financial market’s sentiment relating to the economic development of the Eurozone also deteriorated for the 5th consecutive time, bringing the index to a current level of 21 points, 10.1 points lower than the previous month.
Inflation expectations for the Eurozone were slightly lower. In October, the inflation indicator stood at 17.1 points, 3 points lower than the prior month.
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