German ZEW Economic Sentiment dropped sharply to -21.1 in June, down from -2.1 and missed expectation of -5.8. That’s also the lowest reading since November. Current Situation gauge dropped to 7.8, down from 8.2, beat expectation of 6.1. Eurozone ZEW Economic Sentiment dropped to -20.2, down from -1.6 and missed expectation of -3.6. Eurozone Current Situation gauge rose 3.3 pts to -3.7.
ZEW President Professor Achim Wambach said: “The sharp drop in the ZEW Indicator of Economic Sentiment coincides with an increased uncertainty regarding the future development of the global economy and substantially worsened figures for the German economy at the beginning of the second quarter. The intensification of the conflict between the USA and China, the increased risk of a military conflict in the Middle East and the higher probability of a no-deal Brexit are all casting a shade on the global economic outlook. On top of this, German industry has been reporting worse than expected figures for production, exports and retail sales for April.”
