German ZEW economic sentiment dropped to -23.7 in October, down from -10.6 and missed expectation of -12.3. That’s also the lowest level since 2012. Current situation index also dropped to 70.1, down from 76 and missed expectation of 72. Eurozone ZEW economic sentiment dropped to -19.4, down form -7.2 and missed expectation of -9.2. Current situation index rose 0.3 to 32.0.
ZEW President Achim Wambach said in the release: “Expectations for the German economy are dampening above all due to the intensifying trade dispute between the USA and China. The resulting negative expectations on German exports are now beginning to show in the actual development of exports. A further negative influence on economic and export expectations is the danger of a ‘hard Brexit’, which is becoming ever more likely. Last but not least, the situation of the governing coalition in Berlin is perceived to have become more unstable, which also weighs on economic sentiment.”
