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German economic expectations fall in July to -6.8

The results of the UK referendum became a strong hit for German investors. German economic outlooks fell in July to the lowest level for the last four years. This result was noted in the latest report released by ZEW.

 

According to the report released on Tuesday, economic expectations fell to the negative rate to -6.8 from 19.2 in June. It is the minimum level since November 2012. Experts forecasted the index to fall at least to 8.5.

 

Current conditions also fell from 54.5 to 49.8. Experts forecasted a fall to 51.2.

 

ZEW members noted that the referendum had surprised analysts. Uncertainty of possible consequences for German economic growth is a key factor of such negative economic sentiment. ZEW notes that the negative impact on economic outlooks put uncertainty in export, banking, and financial system in the Europe, a stability of which is under question.