Investing.com – German economic sentiment deteriorated more-than-expected in November, falling to the lowest level since November 2008 as the ongoing sovereign debt crisis in the euro zone continued to weigh on sentiment, data showed on Tuesday.
In a report, the ZEW Centre for Economic Research said that its index of German economic sentiment decreased by 6.9 points to minus 55.2 in November from a reading of minus 48.3 in October. The index declined for the ninth consecutive month.
Analysts had expected the index to fall by 4.2 points to minus 52.5 in November.
The assessment of the current economic situation in Germany is still in the positive territory, but it has once again worsened compared to the previous month. The corresponding indicator has dropped by 4.2 points to the 34.2 points-mark.
Meanwhile, economic sentiment in the euro zone declined by 7.9 points in November to minus 59.1 from minus 51.2 in October. Economists had expected euro zone economic sentiment to decline by 4.1 points to minus 55.3.
On the index, a level above 0.0 indicates optimism, a level below 0.0 indicates pessimism.
Government crises in Italy and Greece have further increased the uncertainty about the economic development in the euro zone.
Commenting on the report, ZEW President Wolfgang Franz said, “World trade is weakening and the public debt problems in the euro zone and in the U.S. weigh heavily on business activity. These risks could even gain more importance and thus could further harm economic growth in Germany."
Following the release of that data, the euro held on to losses against the U.S. dollar, with EUR/USD falling 0.51% to hit 1.3564.
Meanwhile, European stock markets remained lower. The EURO STOXX 50 dropped 1.35%, France’s CAC 40 slumped 1.3%, Germany's DAX sank 1.35%, while the FTSE 100 declined 0.6%.
In a report, the ZEW Centre for Economic Research said that its index of German economic sentiment decreased by 6.9 points to minus 55.2 in November from a reading of minus 48.3 in October. The index declined for the ninth consecutive month.
Analysts had expected the index to fall by 4.2 points to minus 52.5 in November.
The assessment of the current economic situation in Germany is still in the positive territory, but it has once again worsened compared to the previous month. The corresponding indicator has dropped by 4.2 points to the 34.2 points-mark.
Meanwhile, economic sentiment in the euro zone declined by 7.9 points in November to minus 59.1 from minus 51.2 in October. Economists had expected euro zone economic sentiment to decline by 4.1 points to minus 55.3.
On the index, a level above 0.0 indicates optimism, a level below 0.0 indicates pessimism.
Government crises in Italy and Greece have further increased the uncertainty about the economic development in the euro zone.
Commenting on the report, ZEW President Wolfgang Franz said, “World trade is weakening and the public debt problems in the euro zone and in the U.S. weigh heavily on business activity. These risks could even gain more importance and thus could further harm economic growth in Germany."
Following the release of that data, the euro held on to losses against the U.S. dollar, with EUR/USD falling 0.51% to hit 1.3564.
Meanwhile, European stock markets remained lower. The EURO STOXX 50 dropped 1.35%, France’s CAC 40 slumped 1.3%, Germany's DAX sank 1.35%, while the FTSE 100 declined 0.6%.