German Economic Expectations Decline Sharply in November -ZEW Survey
German economic expectations have plummeted in November for the second consecutive month, indicating a slowdown of the economic recovery in Germany, the ZEW economic research institute said Tuesday.
The measure of economic expectations fell to 39.0 in November from 56.1 in October, the institute said. The outcome is close to economists’ forecast of 40.0 points in a survey by The Wall Street Journal.
The assessment of the current economic situation in Germany has slightly worsened, falling to minus 64.3 in November from minus 59.5 in October, the ZEW institute said. The reading compares to the economists’ forecast of minus 65.0 points.
“Financial experts are concerned about the economic impact of the second wave of Covid-19 and what this will entail,” said Achim Wambach, president of the ZEW institute.
Mr. Wambach said experts are worried about the German economy heading back into recession, adding that neither Brexit negotiations nor the outcome of the U.S. presidential election are having an impact on German economic expectations.
Source: Dow Jones