“The sharp drop in the ZEW Indicator of Economic Sentiment coincides with an increased uncertainty regarding the future development of the global economy and substantially worsened figures for the German economy at the beginning of the second quarter. The intensification of the conflict between the USA and China, the increased risk of a military conflict in the Middle East and the higher probability of a no-deal Brexit are all casting a shade on the global economic outlook. On top of this, German industry has been reporting worse than expected figures for production, exports and retail sales for April,” comments ZEW President Professor Achim Wambach.
The financial market experts’ sentiment concerning the economic development of the eurozone also experienced a significant drop, with the corresponding indicator currently standing at minus 20.2 points, 18.6 points below the reading from the previous month. By contrast, the indicator for the current economic situation in the eurozone climbed 3.3 points to a level of minus 3.7 points in June.