The economic sentiment indicator in Germany came in at negative 14.7 points in July, contracting by 6.2 points in comparison to the June reading, the Centre for European Economic Research (ZEW) revealed on Tuesday. The current situation indicator deteriorated, sliding from negative 56.5 points last month to negative 59.5 points.
While the current situation index in the euro area dropped by 2.5 points to 44.4 points in July, the economic sentiment indicator for the Eurozone also weakened, falling 2.2 points month-over-month to register at negative 12.2 points.
"Financial market experts predict a further deterioration in the economic situation by year-end. A key reason for this is the expectation of rising short-term interest rates in the eurozone and the USA. Additionally, important export markets like China are seen as relatively weak," ZEW President Professor Achim Wambach commented.
