Investor confidence in Germany softened slightly in November, signaling continued caution about Europe’s largest economy despite signs of broader regional improvement. German ZEW Economic Sentiment Index slipped to 38.5 from 39.3, missing expectations of 42.5. Current Situation Index improved modestly from -80.0 to -78.7.
In contrast, Eurozone-wide ZEW Sentiment Index rose to 25.0 from 22.7, beating forecasts of 23.5. Current Situation Index improved to -27.3, up 4.5 points.
ZEW President Achim Wambach noted that while sentiment remains broadly stable, investors’ trust in Germany’s economic policy response has weakened. He said the government’s investment initiatives may deliver short-term stimulus, but “structural problems continue to exist”.
