trending Market Intelligence /marketintelligence/en/news-insights/trending/vc24imu8uwti4zo4305irq2 content esgSubNav
In This List

German economic sentiment stuck at lowest level since November 2012

Podcast

Street Talk Episode 87

Blog

A New Dawn for European Bank M&A Top 5 Trends

Blog

Insight Weekly: US banks' loan growth; record share buybacks; utility M&A outlook

Blog

Banking Essentials Newsletter 2021: December Edition


German economic sentiment stuck at lowest level since November 2012

Economic sentiment in Germany remained at its lowest level since November 2012 in May as geopolitical uncertainties dampened investors' expectations.

The indicator of economic sentiment came in at negative 8.2 points, unchanged from April and well below the long-term average of 23.4 points, the Center for European Economic Research, or ZEW, said in its monthly survey.

"The effects of the relatively positive values for German exports and production in March 2018 have been overshadowed in the most recent survey by uncertainty motivated by recent political events," ZEW President Achim Wambach said.

"The U.S. decision to back out of the nuclear treaty with Iran and fears of a further escalation of the international trade conflict with the U.S., as well as a further rise of crude oil prices, have had an overall negative impact on economic expectations in Germany," Wambach added.

Investors' assessment of the current economic situation was down 0.5 points to 87.4.

Growth in the eurozone's largest economy slowed more than expected to 0.3% in the first quarter from 0.6% in the prior three months amid a weaker contribution from trade, modest consumer spending and a decline in government expenditure, official data showed.

Meanwhile, sentiment concerning the economic development of the eurozone was up 0.5 point to 2.4, while the indicator of the current economic assessment of the region slipped 1.6 points to 56.1.