The mood of German investors fell slightly in October, confirming a pessimistic judgment on the prospects of the German economy, according to the barometer of the ZEW institute released Tuesday.
This indicator fell 0.3 points in one month, falling to -22.8 points from -22.5 points in September, which was marked by a strong rebound.
As for the barometer component measuring the current situation of the economy of the leading European economy, it has again deteriorated by 5.4 points, reaching -25.3 points, its lowest level since April 2010, details the ZEW.
In view of the evolution of the two indicators, "financial experts still expect a deterioration of the German economy," said Achim Wambach, president of the ZEW, quoted in a statement.
Friday's confirmation by US President Donald Trump of a partial agreement between the United States and China after two days of talks in Washington "does not seem to reduce economic skepticism at the moment," Wambach said. .
In addition, there is still a lack of clarity about the exit conditions of Britain from the EU, and the European Central Bank launched in September a new easing of monetary policy, while being sharply divided within it, putting into effect danger its credibility.
The decline in the barometer for the euro zone is also limited, losing 1.1 points to -23.5 points.
After falling 0.1% from April to June, German GDP could contract again in the summer months, still penalized by its industry, anticipate the most pessimistic economists. This would mean that Germany could end up in a technical recession, posting two consecutive quarters in decline.
The German government, which remains at the moment a rise in gross domestic product of 0.5% in 2019, update its forecast Wednesday.
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