Economic sentiment in Germany declined sharply in March amid concerns over a U.S.-led global trade conflict and appreciation of euro, the Center for European Economic Research, or ZEW, said.
ZEW's indicator of economic sentiment fell 12.7 points from February to 5.1 and was well below the long-term average of 23.6. The percentage of experts who expect the country's economy to decline over the next six months rose 7.2 points to 12.9%. The measure of assessments of the current situation decreased 1.6 points to 90.7 points in March.
"Concerns over a US-led global trade conflict have made the experts more cautious in their prognoses. The strong euro is also hampering the economic outlook for Germany, a nation reliant on exports," ZEW President Achim Wambach said.
The economic sentiment indicator for the eurozone dropped by 15.9 points to 13.4. The assessment of the region's current economic situation decreased by 1.5 points to 56.2.