Germany's economic outlook worsened in October from the prior month, as a partial trade deal between the U.S. and China failed to lift the mood, according to a survey by research institute ZEW.
The economic sentiment indicator came in at minus 22.8 points in October, compared with minus 22.5 points in September.
The deterioration, however, was less than expected. The consensus estimate of economists polled by Econoday was for a reading of minus 29.4 points.
The "slight" decrease in sentiment indicates that markets continue to project further deterioration in the German economy, ZEW President Achim Wambach said. "The recent settlement in the trade dispute between the [U.S.] and China does not seem to diminish economic skepticism at this stage."
The U.S. said Oct. 11 that it reached a partial trade deal with China to pause elements of their ongoing trade war, with a new round of principal-level talks due next week to finalize "phase one" of their deal in November.
The indicator assessing the current German economic situation dropped to minus 25.3 points from minus 19.9 points, marking the lowest reading since April 2010. The latest print was in line with the Econoday consensus estimate.
Meanwhile, the indicator assessing the current economic situation in the eurozone lost 10.8 points to minus 26.4 points in October.