Germany’s economic sentiment falls well below estimates in August

By Emir Yildirim

ISTANBUL (AA) – Germany’s economic sentiment fell sharply month-on-month in August, plummeting to its lowest level since July 2022, according to official data released on Tuesday.

The country’s ZEW Indicator of Economic Sentiment decreased to 19.2 in August from 41.8 in July, down 22.6 points, and well below the estimates of 32 points.

Achim Wambach, ZEW’s president, stated that the “high level of uncertainty, driven by ambiguous monetary policy, disappointing business data from the US economy, and growing concerns over the conflict in the Middle East” influenced the decline in German economic morale.

Meanwhile, the assessment of Germany’s economic situation fell to minus 77.3 in August, down 8.4 from minus 68.9 points in July.

As for the eurozone, the assessment of the economic situation climbed 3.7 to minus 32.4 points in August versus 36.1 points in July, the ZEW Indicator showed.