German Economic Pessimism Worsens in August – ZEW
2022.08.16 12:42
By Scott Kanowsky
Investing.com — Investor pessimism in Germany darkened further in August, as surging inflation and fears of a potential energy crisis stemming from a slowdown in Russian gas supplies threaten the outlook for Europe’s largest economy.
The ZEW institute’s gauge of economic sentiment slumped to minus 55.3 in August, down from minus 53.8 in July. It is the lowest reading since 2011, when Europe was in the midst of a continent-wide debt crisis.
“The financial market experts therefore expect a further decline in the already weak economic growth in Germany. The still high inflation rates and the expected additional costs for heating and energy lead to a decrease in profit expectations for the private consumption sector,” said Dr. Michael Schröder, head of the ZEW financial market survey.
