Economic sentiment in Germany declines for fifth consecutive month: ZEW

2021-10-12 16:06:08 GMT2021-10-13 00:06:08(Beijing Time) Xinhua English

BERLIN, Oct. 12 (Xinhua) -- The indicator of economic sentiment in Germany in October decreased by 4.2 points from the previous month to 22.3 points, declining for the fifth consecutive month, according to the monthly expert survey published by the Leibniz Center for European Economic Research (ZEW) on Tuesday.

"The economic outlook for the German economy has dimmed noticeably," said ZEW President Achim Wambach in a statement. The further decline of the indicator of economic sentiment was "mainly due to the persisting supply bottlenecks for raw materials and intermediate products."

The assessment of the current economic situation in Germany also worsened and declined by 10.3 points to 21.6 points, according to the survey. After increasing between February and September, it was the "first time that the indicator has recorded a decline."

"The financial market experts expect profits to go down, in particular in export-oriented sectors such as vehicle manufacturing as well as chemicals and pharmaceuticals," added Wambach.

Expectations of the around 170 financial market experts surveyed regarding economic development in the euro area also worsened, decreasing by 10.1 percent to 21.0 points. The indicator of the current economic situation in the eurozone also fell.

The inflation indicator for the euro area declined slightly to 17.1 points in October, the survey found. However, almost half of the experts still expect inflation rates to rise further in the next six months. Enditem