German ZEW Economic Sentiment dropped to -44.1 in August, down from -24.5 and missed expectation of -28.0. That’s the lowest level sine December 2011, and well below long term average of 21.6. Current Situation Index dropped to -13.5, down from -1.1 and missed expectation of -5.9. Eurozone ZEW Economic Sentiment dropped to -43.6, down from -20.3, missed expectation of -21.7. Eurozone Current Situation dropped -3.9 pts to -14.5.
“The ZEW Indicator of Economic Sentiment points to a significant deterioration in the outlook for the German economy. The most recent escalation in the trade dispute between the US and China, the risk of competitive devaluations, and the increased likelihood of a no-deal Brexit place additional pressure on the already weak economic growth. This will most likely put a further strain on the development of German exports and industrial production,” comments ZEW President Professor Achim Wambach.