German Economic Confidence Improves Despite Risk Fears
2022.06.14 12:45
By Scott Kanowsky
Investing.com — German economic confidence brightened slightly in June, but concerns about risks to future growth remain, according to a closely-watched sentiment index.
The ZEW Economic Sentiment Index rose to -28 from -34.3 in May. However, a negative figure indicates pessimism about the economic outlook.
“[T]he economy is still exposed to numerous risks, such as the effects of the sanctions against Russia, the unclear pandemic situation in China, and the gradual change of course in monetary policy. So although expectations have improved, they are still deep in negative territory,” Achim Wambach, President of the Mannheim-based ZEW think tank, said in a statement.
The index also comes as inflation pressures are mounting in Europe’s largest economy. German consumer prices in May rose on a monthly basis to 0.9% from 0.8%, according to a final CPI reading from the Federal Statistical Office, while the annual figure also jumped to 7.9% from 7.4% in the previous month.
