Flat Ger­man in­vestor sen­ti­ment dis­ap­points

The Myanmar Times - - International Business -

GER­MAN in­vestor sen­ti­ment re­mained un­changed in Septem­ber, the ZEW eco­nomic in­sti­tute said, dis­ap­point­ing an­a­lysts who had ex­pected a big­ger bounce as the Brexit shock wears off.

The in­sti­tute’s closely watched head­line in­vestor con­fi­dence in­dex stood at 0.5 points, ex­actly the same value it reached in Au­gust af­ter re­cov­er­ing slightly from a mas­sive post-Brexit slump in July. An­a­lysts sur­veyed by Fac­tset had pre­dicted an in­crease to 2.5 points.

“It is worrying that sen­ti­ment has not re­cov­ered as wor­ries about the ef­fects of Brexit have eased,” an­a­lyst Jen­nifer McKe­own of Cap­i­tal Economics said, sug­gest­ing that “un­der­ly­ing growth in the Ger­man econ­omy is set to slow”.

ZEW said the lat­est sur­vey showed in­vestors and an­a­lysts were grap­pling with a slew of mixed eco­nomic data in recent weeks.

“Eco­nomic im­pulses at home and abroad are cur­rently in­con­clu­sive and make look­ing ahead more dif­fi­cult,” ZEW pres­i­dent Achim Wam­bach said.

Ex­ports to non-EU coun­tries have slowed, Mr Wam­bach noted, and Ger­man in­dus­trial pro­duc­tion has shrunk at the same time.

But con­di­tions are im­prov­ing in Ger­many’s EU neighbours, which are big cus­tomers for its ex­ported goods.

While in­vestors’ as­sess­ment of the cur­rent sit­u­a­tion in Ger­many and the eu­ro­zone clouded over slightly, los­ing 2.5 and 0.2 points, their fu­ture out­look for the eu­ro­zone bright­ened com­pared with the pre­vi­ous month, gain­ing 0.8 points to reach 5.4. –

Photo: EPA

The head of the Cen­tre of Euro­pean Eco­nomic Re­search (ZEW), Achim Wam­bach, stands in front of the ZEW logo dur­ing a press con­fer­ence in Mannheim, Ger­many.

Newspapers in English

Newspapers from Myanmar

© PressReader. All rights reserved.