German investor morale fell sharply once more in September, greater than forecasted by analysts, in response to the ZEW Economic Research Institute on Tuesday, because the evaluation of the financial state of affairs continued its downward pattern.
The financial sentiment index fell to three.6 factors from 19.2 factors in August. Analysts polled by Reuters had pointed to a studying of 17.0.
“The hope for a swift improvement in the economic situation is visibly fading,” mentioned ZEW president Achim Wambach.
Expectations are plummeting as a result of there’s merely no gentle on the finish of the tunnel, mentioned Alexander Krueger, chief economist at Hauck Aufhaeuser Lampe. “The general trend toward falling growth forecasts is likely to continue,” he mentioned.
The evaluation of the financial state of affairs in Germany has additionally continued to worsen, with the indicator falling to minus 84.5 from minus 77.3, its lowest since May 2020.
“The miserable assessment of the situation points to another lost quarter on the growth side,” Krueger mentioned.
The German financial system shrank within the second quarter, sparking fears of one other recession, marked by two consecutive quarters of contraction.
“With the winter months approaching, the German economy also seems to be hibernating,” mentioned Thomas Gitzel, chief economist at VP Bank.
“Over the next few quarters, the German economy will be caught in a triangle between stagnation, slight growth and a slight contraction in gross domestic product (GDP).”
Source: www.dailysabah.com