- Scepticism regarding future economic growth increased dramatically
- Expectations in line with pessimism prevailing on stockmarkets about economic growth
- Situation in Germany still positive, but deteriorated considerably in August
- Size of drop in indicator is a surprise
- Last time ZEW saw similar drop was after Lehman failure
- Key reasons for drop in indicator are bad outlook for US and euro zone crisis
- Survey results show majority of participants expect ECB rates unchanged until end of year
- Outlook is “extemely low” across all sectors of German industry, but don’t see recession
EUR/USD has recovered from post ZEW data dip, presently back up at 1.4475. Talk of model funds buying into the dip.
