Germany ZEW Economic Sentiment recorded in significantly decline from 4.1 to -10.7 in May, even worse than expectation of -5.0%. Current Situation Index dropped from -32.5 to -34.8.
Eurozone ZEW Economic Sentiment fell form 6.4 to -9.4. Current Situation Index rose 2.7 pts to -27.5.
ZEW President Professor Achim Wambach said:
“The ZEW Indicator of Economic Sentiment has once again fallen sharply. The financial market experts anticipate a worsening of the already unfavourable economic situation in the next six months. As a result, the German economy could slip into a recession, albeit a mild one.
“The sentiment indicator decline is partly due to expectations of further interest rate hikes by the ECB. Additionally, the potential default by the United States in the coming weeks adds uncertainty to global economic prospects”.