The economic sentiment in Germany is expected to plunge further in September, according to a report by the Center for European Economic Research (ZEW) on Tuesday. The sentiment indicator fell 6.6 points from August to a negative 61.9 points, below expectations of around a negative 52.1. The economic sentiment index for the euro area stood at a negative 60.7 points, down 5.8 from August.
The current situation index plummeted 12.9 points to a negative 60.5 for Germany, while it sank 16.9 points to a negative 58.9 points in the Eurozone. "Together with the more negative assessment of the current situation, the outlook for the next six months has deteriorated further. The prospect of energy shortages in winter has made expectations even more negative for large parts of the German industry. In addition, growth in China is assessed less favorably. The latest statistical figures already show a decline in incoming orders, production, and exports," said ZEW President Achim Wambach.
