German investor confidence fell slightly in August on concerns that rising cost of living will hit private consumption, suggesting Europe’s biggest economy is slipping into recession.
The economic research institute ZEW said on Tuesday (16) that its economic confidence index fell to -55.3 points, from -53.8 in July.
A Reuters poll pointed to a reading of -53.8.
“Still high inflation rates and expected additional costs for heating and power lead to lower profit expectations for the private consumer sector,” Michael Schroeder, a researcher at ZEW, said in a statement.
“In contrast, expectations for the financial sector are improving due to the supposed further rise in short-term interest rates,” he added.
The German economy stalled in the second quarter, with the war in Ukraine, rising energy prices, the pandemic and supply disruptions pushing it to the brink of recession. Inflation is at 8.5%.
Source: CNN Brasil
I am Sophia william, author of World Stock Market. I have a degree in journalism from the University of Missouri and I have worked as a reporter for several news websites. I have a passion for writing and informing people about the latest news and events happening in the world. I strive to be accurate and unbiased in my reporting, and I hope to provide readers with valuable information that they can use to make informed decisions.
