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German ZEW Economic Confidence Weakens Marginally

germanyeconomic oct16 15oct19 lt

German investors' confidence decreased less than expected in October, while their assessment of the current economic situation worsened to the lowest since 2010, survey data from the ZEW - Leibniz Centre for European Economic Research in Mannheim showed on Tuesday.

The ZEW Indicator of Economic Sentiment for Germany dropped slightly to -22.8 from -22.5 in September. Economists had forecast a score of -27.

Nonetheless, the reading remained below its long-term average of 21.4.

At the same time, the current assessment indicator of the survey fell by 5.4 points to -25.3, which was the lowest since April 2010. Economists had expected a reading of -26.

"The slight decrease in both the ZEW Indicator of Economic Sentiment and the situation indicator shows that financial market experts continue to expect a further deterioration of the German economy," ZEW President Achim Wambach said.

"The recent settlement in the trade dispute between the USA and China does not seem to diminish economic skepticism at this stage."

The economy ministry said on Monday that the weak phase of the economy continues and the economic indicators are not suggesting any turnaround. But the economy is unlikely to log a strong downturn.

Financial experts' view on the Eurozone economic development also deteriorated in October, ZEW survey revealed. The investor confidence index of the survey fell 1.1 points to -23.5 points.

The index for current economic situation markedly by 10.8 points to a new level of -26.4 points.

Expectations of the inflation trend in the eurozone are also declining considerably. The inflation indicator plunged 8.5 points to 1.0 points, survey data showed.

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