German economic sentiment continues to be at a low level. The ZEW Indicator of economic sentiment dropped to -24.5 points in July, a fall of 3.4 points from June. The long-term average of indicator is 21.8 points. The assessment of the economic situation in Germany deteriorated by 8.9 points in July, with the corresponding indicator dropping to a current reading of -1.1 points.
The continued negative trend in incoming orders in the Germany industry is expected to have reinforced the financial market experts’ pessimistic sentiment, stated ZEW President Professor Achim Wambach.
“A lasting containment of the factors that are causing uncertainty in the export-oriented sectors of the German economy is currently not in sight. The Iran conflict seems to be intensifying and the ongoing trade dispute between the USA and China is a burden not only to Chinese economic development. Furthermore, no discernible progress has been made in the negotiations as to what Brexit will look like”, commented Achim Wambach.
Meanwhile, the euro area’s economic development sentiment eased slightly, with the corresponding indicator dropping 0.1 points to -20.3 points. The indicator for the current economic situation in the euro area dropped 6.9 points to a level of -10.6 points in July.
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