German investors hit the doldrums
Print Edition
INVESTMENT sentiment in Germany fell to the lowest level for nearly two years in August amid concern about the economic fallout from crises such as the tension over Russia-Ukraine, data showed yesterday.
The widely watched investor confidence index calculated by the ZEW economic institute fell by 18.5 points to 8.6 points in August, its lowest level since December 2012, it said.
It was the eighth monthly decline in a row and the sharpest since June 2012. Analysts had been projecting a much shallower drop to 18 points.
“The decline in economic sentiment is likely connected to the ongoing geopolitical tensions that have affected the German economy by now,” ZEW said in a statement.
The institute did not name the trouble spots specifically, but the German economy ministry said in a report earlier that the Russia-Ukraine crisis is hurting Europe’s top economy, as well as the turmoil in the Middle East.
“In particular, current figures on industrial production and incoming orders suggest markedly reduced investment activities on the part of German firms against the backdrop of uncertain sales prospects,” the statement continued.
“Since the economy in the eurozone is not gaining momentum either, the signs are that economic growth in Germany will be weaker in 2014 than expected.”
For the survey, ZEW questions analysts and institutional investors about their current assessment of the economic situation in Germany, as well as their hopes for the coming months.
The sub-index measuring financial market players’ view of the current economic situation in Germany fell by 17.5 points to 44.3 points in August, its lowest level since January.
“The fact that the index is now barely positive means that only a very small majority of investors see economic conditions improving rather than deteriorating over the next six months,” said Capital Economics economist Jennifer McKeown.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
