Investing.com – German economic sentiment declined in August, dropping for the seventh consecutive month as the sovereign debt crisis in the euro zone continued to weigh on sentiment, industry data showed on Tuesday.
In a report, the ZEW Centre for Economic Research said that its index of German economic sentiment fell by 5.7 points to minus 43.3 September from a reading of minus 37.6 in August.
Analysts had expected the index to decline to minus 44.1 in August.
On the index, a level above 0.0 indicates optimism, a level below 0.0 indicates pessimism.
Meanwhile, economic sentiment in the euro zone declined more-than-expected in August, falling by 4.6 points to minus 44.6 from minus 40.0 in August. Economists had expected euro zone economic sentiment to decline to minus 42.5.
Commenting on the report, ZEW President Wolfgang Franz said, “The downward trend of economic perspectives is losing momentum this month. However, the economic outlook is characterized by a high degree of insecurity, which according to the financial market experts undermines investor and consumer sentiment."
Following the release of the data, the euro remained lower against the U.S. dollar, with EUR/USD shedding 0.17% to trade at 1.3663.
Meanwhile, European stock markets were broadly higher. The EURO STOXX 50 rose 0.85%, France’s CAC 40 added 0.55%, Germany's DAX rallied 1.35%, while the FTSE 100 was up 0.7%.
In a report, the ZEW Centre for Economic Research said that its index of German economic sentiment fell by 5.7 points to minus 43.3 September from a reading of minus 37.6 in August.
Analysts had expected the index to decline to minus 44.1 in August.
On the index, a level above 0.0 indicates optimism, a level below 0.0 indicates pessimism.
Meanwhile, economic sentiment in the euro zone declined more-than-expected in August, falling by 4.6 points to minus 44.6 from minus 40.0 in August. Economists had expected euro zone economic sentiment to decline to minus 42.5.
Commenting on the report, ZEW President Wolfgang Franz said, “The downward trend of economic perspectives is losing momentum this month. However, the economic outlook is characterized by a high degree of insecurity, which according to the financial market experts undermines investor and consumer sentiment."
Following the release of the data, the euro remained lower against the U.S. dollar, with EUR/USD shedding 0.17% to trade at 1.3663.
Meanwhile, European stock markets were broadly higher. The EURO STOXX 50 rose 0.85%, France’s CAC 40 added 0.55%, Germany's DAX rallied 1.35%, while the FTSE 100 was up 0.7%.