Economic sentiment indicator drops
Germany's economic sentiment indicator, developed by the ZEW institute, declines sharply for the second time in a row.
Frankfurt (dpa) - An indicator of economic sentiment put out by Germany's ZEW institute fell sharply in June, dropping by 19 points to minus 21.1, the institute reported on Tuesday from its headquarters in Mannheim.
It marked the second decline in a row for the indicator, which is compiled from a survey of financial analysts in Germany. Analysts had predicted a much smaller fall of around 5.6 points on average.
The decline "coincides with an increased uncertainty regarding the future development of the global economy and substantially worsened figures for the German economy at the beginning of the second quarter," ZEW president Achim Wambach said.
Wambach pointed in particular to the worsening trade conflict between the United States and China and the risk of military conflict in the Middle East.
A separate indicator of the current economic situation scored less poorly among those surveyed, falling by 0.4 points in June to 7.8.