Berlin, August 13 (FFN) – Investor sentiment in Germany significantly worsened in August, recording the steepest decline in two years. This information comes from a report by Reuters, based on the latest survey results from the ZEW economic research institute.
The ZEW Investor Confidence Index, which reflects expectations for the next six months, dropped to 19.2 points in August, down from 41.8 points in July. Analysts polled by Reuters had anticipated a much milder decrease to 32 points.
“Economic prospects for Germany are collapsing,” said Achim Wambach, President of the ZEW Institute. The decline was the steepest since July 2022, and the index reached its lowest level in the past seven months. Wambach added that expectations remain heavily impacted by a high degree of uncertainty, driven by unclear monetary policy, disappointing data from the U.S. economy, and growing concerns about an escalation of conflict in the Middle East.
Additionally, the assessment of Germany’s current economic situation also worsened. The corresponding index fell to -77.3 points from -68.9 points in the previous month.
German Investor Sentiment and Economic Situation:
| Index | July Value | August Value | Expected August Value |
|---|---|---|---|
| ZEW Investor Confidence | 41.8 | 19.2 | 32.0 |
| Current Economic Situation | -68.9 | -77.3 | N/A |
