Economic sentiment in euro area deteriorates

Tuesday, 18. June 2019 11:06

The indicator of economic sentiment in Germany suffered a second-largest drop ever this month, the Centre for European Economic Research said on Tuesday. The measure lost 19 points and landed at 21.1 below zero, the lowest since November. It compares to the long-term average of 22 points, according to the institute better known as ZEW. Its sentiment for the euro area was measured at a negative 20.2 points, down by 18.6 from May, but the current situation indicator rose by 3.3 points, to 3.7 under zero.

The assessment of present conditions in Eurozone's largest economy worsened, with the gauge slipping 0.4 points to 7.8. Analysts who participated in the survey took the headline, forward-looking indicators strongly lower also for the United States, Japan and Britain, where the US current situation assessment also deteriorated.

Achim Wambach, ZEW's president, cited concern about the global economy and Germany's disappointing indicators across the board. "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," he stressed.

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