German business sentiment sharply declines in August, says ZEW report.

14 Aug, 2024

German business sentiment sharply declines in August, says ZEW report.

German business sentiment saw a significant decline in August, as revealed by the latest ZEW survey. The ZEW indicator of economic sentiment dropped sharply by 22.6 points, reaching 19.2, marking the most substantial decrease since July 2022. Additionally, the indicator assessing Germany's current economic situation fell by 8.4 points to -77.3.

According to ZEW President Professor Achim Wambach, the economic outlook for Germany is worsening. The survey highlighted the steepest decline in economic expectations in the past two years. Expectations for the eurozone, the US, and China also showed a marked deterioration, leading to a decrease in forecasts for export-dependent German industries.

The ongoing uncertainty in global markets, influenced by ambiguous monetary policies, disappointing US business data, and escalating concerns over the Middle East conflict, continues to impact economic expectations. This uncertainty has also recently led to turmoil in international stock markets.