German Economic Sentiment Falls Further to -41.0

Source: ZEW

German economic sentiment declined further in April, as experts assume that economic conditions are expected to deteriorate moving forward. EWG is up 0.44%, while DAX is down 1.82% premarket.

• The ZEW Indicator of Economic Sentiment for Germany dropped 1.7 points to -41.0 points.
• The assessment of the economic situation also declined by 9.4 points to -30.8, the second decline since the start of the conflict between Russia and Ukraine.
• Both indicators are similar to levels seen at the onset of the COVID-19 pandemic in March 2020.
• Inflation expectations have also declined by 43.4 points to a new value of 26.8 points.
• ZEW President Professor Achim Wambach said experts are pessimistic about the ongoing economic situation, but the inflation expectations provide hope.
• Wambach noted, however, that the possibility of stagflation remains.