German investor confidence declined for the third straight month in August to mark the lowest reading since late 2020, according to the ZEW Economic Research Institute.
- The ZEW Economic Sentiment Index fell to 40.4 from 63.3 in July.
- ZEW President Achim Wambach warned of “increasing risks” as COVID-19 infection rates rise.
- Over half of Germany’s population has already been fully vaccinated, and the government has imposed stricter travel restrictions. Additional regulations could be discussed Tuesday.
- Another risk comes from manufacturing which continues to be hit by global supply issues and delivery pushback, which have driven price pressures.
- The Bundesbank expects growth to accelerate in the third quarter after the 1.5% growth in the second quarter.
- The central bank believes the economy is starting to recover and make up for the losses incurred due to the pandemic.