Although the fall was unexpected there is no clear indication it will change the overall forecast for the German Economy. Next week’s Ifo business survey will either confirm a downward trend, or dispel some fears as analyst await expectantly.
German investor sentiment has slipped unexpectedly this month as optimism about the recovery in Europe’s largest economy loses some of its fizz.
The Mannheim-based ZEW research institute said its economic sentiment indicator had fallen by 1.7 points to 56.0 points in October. Apart from an earlier drop in July, the ZEW index had been on a steady-upward trend since late last year and in September had reached the highest for three years.
Although the index remains well above its historical average of 26.7 points, the latest reading added to evidence that the momentum behind Germany’s economic recovery is diminishing.
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Alfonso Esparza