Germany’s ZEW Economic Sentiment Index rose modestly in October to 39.3, up from 37.3 but below expectations of 41.7. Current Situation Index deteriorated further from -76.4 to –80.0, undershooting forecasts of –75.0.
ZEW President Achim Wambach noted that experts “are still hoping for an upturn in the medium term,” but persistent global uncertainties and questions over Berlin’s state investment program continue to weigh on confidence.
Sectorally, expectations improved in several export-oriented industries after a recent slump in shipments to China. However, the automotive sector—long Germany’s industrial backbone—remains an exception with “slightly deteriorating indicator.”
Across the broader Eurozone, confidence took a sharper turn lower. ZEW Economic Sentiment Index dropped to 22.7 from 26.1, missing expectations of 30.2. Current Situation Index plunged by -30 points to –31.8. ZEW attributed the decline largely to political instability in France and ongoing budget disputes.
