German Economic Optimism Drops Sharply in September

Germans are turning increasingly pessimistic on their country’s economy, as weakening emerging markets start to dampen the outlook, the latest index from the country’s ZEW institute shows.

In its latest survey of financial forecasters, the ZEW economic expectations index for September showed a drop to 12.1 from 25.0 in August.

ZEW President Clemens Fuest attributed the fall to a worsening economic outlook in the developing world.
“The weakening economic development in emerging markets dampens the economic outlook for Germany’s export-oriented economy. While economic growth in the second quarter was largely driven by external demand, it is becoming less likely that exports will stimulate growth in the near future,” Fuest said in a statement accompanying the indexes’ release.

ZEW’s current conditions survey did however showed a slight bounce to 67.5 in September from 65.7 the month before and against expectations of a retreat to 64.0


Craig Erlam
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the BBC and The Telegraph, and he also appears regularly as a guest commentator on Bloomberg TV, CNBC, FOX Business and BNN. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.