The ZEW Indicator of Economic Sentiment for Germany has further declined in October 2015. Decreasing by 10.2 points compared to the previous month, the index now stands at a level of 1.9 points (long-term average: 24.8 points). “The exhaust gas scandal of Volkswagen and the weak growth of emerging markets has dampened economic outlook for Germany. However, the performance of the domestic economy is still good and the Euro area economy continues to recover. This makes it rather unlikely that the German economy will slide into recession,” says ZEW President Professor Clemens Fuest.
The assessment of the current situation in Germany has declined as well. Decreasing by 12.3 points, the index now stands at 55.2 points.
Financial market experts’ sentiment concerning the economic development of the Eurozone has weakened. ZEW’s Indicator of Economic Sentiment for the Eurozone has decreased by 3.2 points to a reading of 30.1 points. Declining 1.5 points in October 2015, the indicator for the current situation in the euro area has reached a value of minus 11.2 points.
