Germany’s ZEW Economic Sentiment Plunges More than Expected in August

ZURICH (MaceNews) – The economic outlook in Germany fell for the third consecutive month in August on Covid and China growth concerns, according to the latest report from the ZEW research institute in Mannheim.

Expectations fell 22.9 points from the previous month to 40.4, well below the median forecast of 57.0 in an Econoday survey of economists. 

Current conditions on the other hand improved to 29.3 in August, up 7.4 points from July, and just below the Econoday consensus of 30.0.

“Expectations have declined for the third time in a row. This points to increasing risks for the German economy, such as from a possible fourth COVID-19 wave starting in autumn ora slowdown in growth in China. The clear improvement in the assessment of the economic situation, which has been ongoing for months, shows that expectations are also weakening due to the higher growth already achieved,” comments ZEW President Professor Achim Wambach on current expectations.

ZEW also conducts surveys for other regions and countries economic expectations:

  • Eurozone -18.5 to 42.7 in August
  • USA -16.6 to 23.4 in August
  • China -14.5 to 9.5 in August

On August 25, Germany’s IFO institute will release its closely watched index of business sentiment.

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