Germany economic recovery hopes fade as sentiment falls again in September

LONDON (ICIS)–Hopes of a recovery in Germany’s economy are fading, think tank ZEW said on Tuesday, as its economic sentiment indicator fell for the third month in a row.

The research group’s September economic sentiment indicator declined by 15.6 points from August to 3.6 points, while its assessment of the current situation in Germany was down by 7.2 points to -84.5 points, the lowest since May 2020.

Both indicators also fell sharply in August from the previous month. The economic sentiment indicator began its 2024 downward trend in July.

“The hope for a swift improvement in the economic situation is visibly fading,” said ZEW president Achim Wambach.

“In the latest survey, we once again observe a noticeable decline in economic expectations for Germany.”

The outlook for the eurozone was also gloomy, with the September economic sentiment indicator down by 8.6 points to 9.3 points.

The assessment of the current situation in the eurozone fell by 8 points from August, remaining firmly in negative territory at -40.4 points.