Investing.com – German economic sentiment deteriorated more-than-expected in October, declining for the eighth consecutive month as the ongoing 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 5.0 points to minus 48.3 October from a reading of minus 43.3 in September.
Analysts had expected the index to decline to minus 45.0 in October.
The current economic situation in Germany lost ground for the third consecutive month in October. The corresponding indicator dropped by 5.2 points to the 38.4, the lowest since November 2008.
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 October, falling by 6.6 points to minus 51.2 from minus 44.6 in September. Economists had expected euro zone economic sentiment to decline to minus 45.1.
Commenting on the report, ZEW President Wolfgang Franz said, “Weak data concerning Germany’s domestic economic activity have contributed to the indicator’s decline.”
Following the release of the data, the euro added to losses against the U.S. dollar, with EUR/USD falling 0.54% to trade at 1.3662.
Meanwhile, European stock markets were down sharply. The EURO STOXX 50 tumbled 1.4%, France’s CAC 40 plunged 2.1%, Germany's DAX slumped 1%, while the FTSE 100 was down 1.25%.
In a report, the ZEW Centre for Economic Research said that its index of German economic sentiment fell by 5.0 points to minus 48.3 October from a reading of minus 43.3 in September.
Analysts had expected the index to decline to minus 45.0 in October.
The current economic situation in Germany lost ground for the third consecutive month in October. The corresponding indicator dropped by 5.2 points to the 38.4, the lowest since November 2008.
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 October, falling by 6.6 points to minus 51.2 from minus 44.6 in September. Economists had expected euro zone economic sentiment to decline to minus 45.1.
Commenting on the report, ZEW President Wolfgang Franz said, “Weak data concerning Germany’s domestic economic activity have contributed to the indicator’s decline.”
Following the release of the data, the euro added to losses against the U.S. dollar, with EUR/USD falling 0.54% to trade at 1.3662.
Meanwhile, European stock markets were down sharply. The EURO STOXX 50 tumbled 1.4%, France’s CAC 40 plunged 2.1%, Germany's DAX slumped 1%, while the FTSE 100 was down 1.25%.