Morale among German analysts and investors plummeted in October as the diesel emissions scandal at carmaker Volkswagen and weakness in emerging markets took their toll, a survey by ZEW think tank showed on Tuesday.
Mannheim-based ZEW said its monthly survey showed economic sentiment falling to 1.9 points in October from 12.1 in September. That was far below the consensus forecast for a reading of 6.0.
“The emissions scandal at Volkswagen and sluggish growth in emerging markets are dampening the economic outlook for Germany,” ZEW said in a statement.
A separate gauge tracking current conditions dropped to 55.2 points from 67.5 points in September, undershooting expectations for a drop to 64.7.
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