German investor outlook falls for first time since April

In Germany, investors’ expectations fall to 28.1 points in October from 34.7 in September, their first drop since April. The reading is the weakest since July, according to the Leibniz Centre for European Economic Research (ZEW). Yet those same investors give the economy’s current state a better rating.

That rating improves for the fourth month in a row, rising from -47.1 points in September to -35.9 in October. It is the least pessimistic assessment since May 2023.

ZEW president Achim Wambach says Germany is slowly emerging from stagnation, but the recovery cannot yet sustain itself. High energy prices continue to weigh on household spending and investment, squeeze real incomes, raise production costs and keep inflation high for longer.

German investors also grow less optimistic about the eurozone. Their expectations reading falls from 25.8 points in September to 18.5 in October, while their assessment of its current economy remains virtually unchanged at -14.8 points.

Topics: Economy

Source: Europa Press / Mallorca.com