German investor sentiment drops in July

German investor sentiment has declined for the first time since July 2023, according to the latest ZEW Indicator of Economic Sentiment, which fell to 41.8 points in July 2024, a decrease of 5.7 points from June. Meanwhile, the assessment of the current economic situation showed a slight improvement, rising by 4.9 points to minus 68.9.

ZEW President Professor Achim Wambach noted that this dip in expectations is attributed to several factors, including a larger-than-expected decline in German exports in May, political uncertainty in France, and unclear future monetary policy from the European Central Bank (ECB).

Additionally, sentiment regarding the eurozone’s economic outlook also fell, with the corresponding indicator dropping to 43.7 points, down 7.6 points from June. In contrast, the eurozone situation indicator rose marginally by 2.5 points, reaching minus 36.1.

Attribution: the ZEW economic research institute.