Photo: Flickr / digital cat
Things are deteriorating in Europe again.The widely regarded ZEW survey shows that in the heart of the Eurozone, Germany, sentiment is tanking.
The ZEW Indicator of Economic Sentiment for Germany has dropped by 4.2 points in November 2012. It now stands at a level of minus 15.7 points.
Similar to the previous months, the indicator’s negative balance shows that the surveyed experts rather expect the economy to deteriorate than to improve over the next six months. This month’s decline supports this view. The negative assessment in November may be due to disappointing leading indicators. In the manufacturing sector, for instance, weak incoming orders indicate a further drop in production.
“Since mid-2012 the economic expectations of the financial market experts move more or less sideways while remaining in the negative territory. Prevailing recessionary developments in the Eurozone impact the German economy via foreign trade and a lack of confidence. This is likely to be a burden for economic growth in Germany during the next six months,” says ZEW President Prof. Dr. Dr. h.c. mult. Wolfgang Franz.
The assessment of the current economic situation for Germany has weakened compared to the previous month. The respective indicator has dropped by 4.6 points in November and now stands at the 5.4 points-mark. Economic expectations for the Eurozone have hardly changed in November. The corresponding indicator has dropped by 1.2 points to minus 2.6 points. The indicator for the current economic situation in the Eurozone has hardly changed, too. It now stands at the minus 80.3 points-mark (down 0.9 points).
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