German economic sentiment falls to 7-month low

By Tuba Ongun

ANKARA (AA) - Economic morale in Germany plunged to a seven-month low in July, according to data released on Tuesday.

The Leibniz Centre for European Economic Research's (ZEW) indicator of economic sentiment for Germany dropped by 6.2 points from a month ago to minus 14.7 points in July.

Investors estimated a further deterioration in the economic situation by year-end due to the central bank's monetary tightening and weakening export demand, especially from China, ZEW head Achim Wambach said.

"The industrial sectors are likely to bear the brunt of the anticipated economic downturn, with profit expectations for these export-oriented industries experiencing a substantial decline once again," Wambach said.

An index of current conditions declined sharply in Germany to minus 59.5 points in July, a decrease of 3 points from June.

Investors' morale concerning the economic development of the eurozone slightly worsens by 2.2 points, reaching minus 12.2 points in July.