German economic sentiment dips in July - ZEW
German economic sentiment dipped in July and the assessment of the current situation came in below expectations, the monthly ZEW survey of investors showed.
ZEW's sentiment indicator fell 4.1 points to 59.3 from June - just missing economists' average forecast for a figure of 60. The score shows the difference between positive and negative views from 181 analysts.
The survey's assessment of the existing economic situation in Europe's biggest economy edged up 2.2 points to -80.9 but was well below the consensus forecast of -65.
ZEW President Professor Achim Wambach said: “The outlook for the German economy largely remains unchanged compared to the previous month. After a very poor second quarter, the experts expect to see a gradual increase in gross domestic product in the second half of the year and in early 2021."
The reading for economic sentiment for the eurozone in July was 59.6, up a point from a month earlier. The indicator for the current economic situation in the eurozone edged up by 0.9 point to -88.7.
Thomas Dvorak, eurozone economist at Oxford Economics, said: "This marks the fourth consecutive improvement in the index, reflecting the nascent economic recovery in the eurozone following the lifting of the lockdown measures. The assessment of the current situation also improved somewhat but remained at fairly low levels, suggesting investors think the material improvement of the economy is yet to come."
Dvorak said ZEW's snapshot of investor views had diverged from results in the wider economy in recent surveys.