Link Securities | The ZEW institute published yesterday that its index measuring sentiment about Germany’s economy among major investors and analysts declined in November to 7.4 points from 13.1 points in October, also below the 13.3 points expected by FactSet’s consensus of analysts. This was negatively influenced by Donald Trump’s victory in the US presidential election and the collapse of the German coalition government.
The index measuring their perception of the current economic situation in the German economy also worsened, falling to -91.4 from -86.9 in October, also below the -85.0 expected by analysts.
According to ZEW President Professor Achim Wambach, economic sentiment has declined in the survey, and the outcome of the US presidential election is likely to be the main reason for this.
The fact that economic expectations for the US are clearly improving, while economic sentiment for China and the eurozone is falling, supports this view. However, Wambach notes that in the final days of the survey, more optimistic voices were heard, expecting the economic outlook for Germany to improve with the early elections on the horizon.
The ZEW index, which measures sentiment about the eurozone economy among large investors andanalysts, fell in November to 12.5 points from 20.1 points in October, also below the 20.5 points expected by analysts. In November, some 62.5% of investors and analysts surveyed expected no change in economic activity; 25% predicted an improvement and 12.5% anticipated a deterioration.
The index measuring the perception of these groups of the current economic situation of the euro area economy also fell in November, in this case by 3 points to -43.8 points.
