The energy crisis has caused havoc on Germany with consumer and business sentiment. The ZEW Indicator of Economic Sentiment for Germany fell for a third month in a row to -61.9 in September 2022 from -55.3 in August, reaching the lowest since October of 2008, lower than forecasts of -60. The outlook is bleak for the next six months which has deteriorated further, amid prospects of energy shortages in the winter as Russia has shut down Nord Stream 1 though Germany is ahead on storage refills.
Germany ZEW Economic Sentiment Highlights
- Economic Sentiment-61.9 from -55.3 in August, forecast -60.
- Lowest since October of 2008
- Current conditions subindex declined to -60.5 from -47.6.
- Economic development of the eurozone fell by 5.8 points in September and currently stands at minus 60.7 points.
- Situation indicator fell even more sharply and now stands at minus 58.9 points, 16.9 points below the previous month.
- Outlook for the next six months deteriorated further, amid prospects of energy shortages in the winter while growth in China is assessed less favorably
“The ZEW Indicator of Economic Sentiment decreased again in September. Together with the more negative assessment of the current situation, the outlook for the next six months has deteriorated further. The prospect of energy shortages in winter has made expectations even more negative for large parts of the German industry. In addition, growth in China is assessed less favourably. The latest statistical figures already show a decline in incoming orders, production, and exports,” comments ZEW President Professor Achim Wambach on current expectations.
From The TradersCommunity US News Desk