The FINANCIAL — German economic sentiment in September hit its lowest level in 10 months amid growing concerns over the growth outlook in key emerging market economies, especially China, according to Nasdaq.
The ZEW think tank said on September 15 that its indicator of economic expectations fell for the sixth straight month, to 12.1 in September from 25.0 in August. Economists polled by The Wall Street Journal had forecast a decline to 18.5.
“The weakening economic development in emerging markets dampens the economic outlook for Germany’s export-oriented economy,” said ZEW president Clemens Fuest. “It is becoming less likely that exports will stimulate growth in the near future,” he said.
The 220 analysts and institutional investors participating in the ZEW survey continued to be satisfied with Germany’s current situation. The corresponding indicator rose to 67.5 in September from 65.7 the previous month.
Germany’s economics ministry said Thursday that Europe’s largest economy was experiencing a “solid upswing,” but warned that global headwinds are building. “If anything, risks have increased” given the questions marks over China’s economy and recessions in Brazil and Russia, it said in its monthly report.
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