Investor Confidence Declines in Germany
The ZEW index, which shows German investor sentiment on the outlook for Europe's largest economy, fell to -61.9 in September, below expectations. Economists had predicted that the data would fall to -60. A level below zero indicates pessimism, while a reading above zero indicates optimism.
Investors are more pessimistic about the German economy than they have been since the 2008 financial crisis and fears are growing about the impact of a possible energy crisis this winter, according to the ZEW Institute's monthly survey released on Tuesday.
"With a more negative assessment of the current situation, the outlook for the next six months has worsened," ZEW President Achim Wambach said.
President Prof. Dr. Achim Wambach stated that the prospect of energy shortages, especially gas, in winter has made the prospects for most branches of German industry even more negative, "In addition, economic growth in China is also less positive. The latest statistical figures show that there is already a decline in incoming orders, production and exports."
Germany, Europe's largest economy, is facing a spiralling energy crisis triggered by Moscow's decision to stop the flow of gas through the Nord Stream 1 gas pipeline.
The German government
is scrambling to keep the wheels of industry turning, the lights on and homes warm this winter as concerns over the Russia-Ukraine war continue to put pressure on energy supplies.
Expensive energy and food pushed inflation in Germany back to its highest level in nearly 50 years in August.
Annual inflation, which was 7.5 percent in July, rose to 7.9 percent in August after two months, the highest rate since the first oil crisis in the winter of 1973-1974.
Follow Global Economic Developments on Social Media!
to follow Ieconomy official Facebook account!
to follow Ieconomy official Instagram account!
to follow Ieconomy official Twitter account!