German ZEW Sentiment Falls in August

German economic sentiment unexpectedly deteriorated in August, hitting its lowest level since November last year, a sign that the economic upswing in Europe’s largest economy is losing momentum.

“A substantial improvement of the economic situation in Germany over the medium term is improbable,” Clemens Fuest, president of Germany’s ZEW think tank, said on Tuesday, but added that the economic upswing remains intact.

The ZEW said that its indicator of economic expectations fell for the fifth straight month, to 25.0 in August from 29.7 in July. Economists polled by The Wall Street Journal had forecast an increase to 32.0.

But the 228 analysts and institutional investors participating in August’s ZEW survey were slightly more satisfied with Germany’s current situation. The corresponding indicator rose to 65.7 from 63.9 the previous month.

The ZEW survey provides another peak into the third quarter, ahead of Friday’s publication of second-quarter gross domestic product data.

Economists, in a Wall Street Journal poll, are expecting an increase in the quarterly growth rate to 0.5% from 0.3% in the first quarter.

via MarketWatch

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza