Germany ZEW Economic Sentiment dropped from -28 to -53.8 in July, well below expectation of -38.0. Current Situation Index dropped from -27.6 to -45.8, below expectation of -33.5. Both readings were even worse than the values recorded at the beginning of the COVID-19 pandemic.
Eurozone ZEW Economic Sentiment dropped form -28.0 to -51.1, below expectation of -40.0. Current Situation Index dropped -18.0 to -44.4. Inflation expectations rose 6.8 pts to -25.6, remaining clearly in negative territory.
ZEW President Professor Achim Wambach: “The current major concerns about the energy supply in Germany, the ECB’s announced interest rate hike and further pandemic-related restrictions in China have led to a considerable deterioration in the economic outlook.
“The experts assess the current economic situation significantly more negatively than in the previous month and have further lowered their already unfavourable forecast for the next six months.
“Expectations for energy-intensive and export-oriented sectors of the economy have fallen particularly sharply, and private consumption is also assessed as significantly weaker.”
