German investor sentiment remained unchanged in September, the ZEW economic institute said on Tuesday, disappointing analysts who had expected a bigger bounce as the Brexit shock wears off.
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The ZEW’s economic expectations index clung to a reading of 0.5 point, compared with the 2.5 points expected, and well below the long-term average of 24.1 points.
The “current ambiguity of economic impulses from Germany and overseas means that forecasts for the next few months are hard”, Professor Achim Wambach, the ZEW president, wrote.
Britons voted by a narrow margin to quit the European Union on June 23 in the face of warnings of economic mayhem at home and overseas. German exports, particularly to non-EU countries, as well as industrial production figures have disappointed.
The Centre for European Economic Research (ZEW) reported that Germany Economic sentiment was flat for September at 0.5 versus 0.5 in August.
A separate gauge of current conditions fell to 55.1 points from 57.6 in August. Economists had forecast a score of 56.
Industrial production declined the most in almost two years in July as weak demand from China and concerns about the “Brexit” vote weighed on manufacturing activity.
The government has said it expects domestic demand to be the sole driver this year of economic growth it has pegged at 1.7 percent.
Germany’s DIW institute gave a more pessimistic outlook last week, predicting growth will almost halve in 2017 as Brexit and other risks hit exporters.
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In Germany, ZEW said the latest survey showed investors and analysts were grappling with a slew of mixed economic data in recent weeks.
