Germany ZEW Economic Sentiment dropped sharply to 56.1 in October, down from 77.4, missed expectation of 74.0. Germany Current Situation Index improved to -59.5, up from -66.0, slightly better than expectation of -60. Eurozone ZEW Economist Sentiment dropped to 52.3, down from 7.39, well below expectation of 70.5. Eurozone Current Situation rose 4.3 pts to -76.6.
“The ZEW Indicator of Economic Sentiment is still very clearly in positive territory. However, the great euphoria witnessed in August and September seems to have evaporated. The recent sharp rise in the number of COVID-19 cases has increased uncertainty about future economic development, as has the prospect of the UK leaving the EU without a trade deal. The current situation in the run-up to the presidential election in the United States further fuels uncertainty,” comments ZEW President Achim Wambach.