German ZEW Economic Sentiment dropped -8.6pts to -24.7 in July, missing the expectation of -18.2. It’s the lowest reading since August 2012 and well below the long term average of 23.2.
Since the beginning of 2018, the index has dropped by a considerable -45.1 pts.
ZEW President Professor Achim Wambach said in the release that “the current survey period has been marked by great political uncertainty. In particular, fears over an escalation of the international trade war with the United States have dampened the economic outlook. The positive news regarding industrial production, incoming orders and the labour market have been greatly overshadowed by the anticipated negative effects on foreign trade”.