German investor confidence (ZEW index) fell sharply


The confidence of German investors and analysts in the economy fell sharply in August compared to a month earlier. This is according to figures from ZEW research institute.

The ZEW index, which reflects confidence in the next three to six months, reached a level of minus 44.1 against minus 24.5 a month earlier. Economists had generally expected a deterioration to a level of minus 28.

According to ZEW chairman Achim Wambach, the considerably lower confidence was caused by the most recent escalation in the trade dispute between the United States and China, the risk of further interest rate falls and the increasing chance of a no-deal brexit. These factors also weigh on “already weak economic growth”.

“This is likely to put additional pressure on the development of German exports and industrial production”.

It is the fourth month in a row that investor confidence is falling. There was also a substantial decline in June. Then the gauge went from minus 2.1 to minus 21.1.

By: Leah Kunze

Leah Kunze just graduated MBA and is proud of it. She is interested in automotive industry and innovations. She well be glad to receive a mail to

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