CdM | German investor confidence has worsened significantly in April as a result of “erratic changes” in US trade policy, according to the Leibniz Centre for European Economic Research (ZEW), reports Europa Press this morning.
Specifically, the German investor confidence figure stood at -14 points in April, compared to 51.6 in the previous month, which is the worst reading of the index since July 2023, after suffering the biggest monthly fall since February 2022.
By contrast, Germany’s assessment of the current economic situation improved in April, albeit much less sharply, at -81.2 points, compared with -87.6 points in March, the best reading since August last year.
As for the eurozone, German investors’ expectations also worsened substantially in April, with a reading of -18.5 points, down from 39.8 points in March, while the reading for the current situation worsened to -50.9 from -45.2 points.
Sectors with a strong export component, such as the automotive and chemical industries, as well as the metal, steel and mechanical engineering sectors, which recently enjoyed better prospects, are affected.
Moreover, financial market experts currently perceive no risk of a further pick-up in inflation in Germany and the eurozone, which gives the ECB room for manoeuvre to boost the economy by further interest rate cuts, although opinions are divided on which path the US Federal Reserve will follow.
