German economic sentiment falls in October

By Gokhan Ergocun

ISTANBUL (AA) - German economic sentiment declined in October following a period of steady improvement over the summer, according to survey results released by the ZEW Leibniz Centre for European Economic Research on Tuesday.

The ZEW Indicator of Economic Sentiment for Germany fell 6.6 points from the previous month to 28.1 points in October.

Conversely, the assessment of Germany's current economic situation showed a significant improvement, rising 11.2 points to minus 35.9 points.

ZEW President Achim Wambach said that while the German economy is slowly emerging from stagnation, the recovery remains fragile.

Wambach noted that private consumption and investment remain weak due to high energy prices, which continue to pressure real incomes, elevate production costs and prolong inflation.

Sectoral expectations presented a mixed picture for the fourth quarter, with financial institutions, services and telecommunications experiencing declines, while the steel, metal manufacturing and electronics sectors recorded positive signals.

In the euro area, economic expectations also deteriorated in October, with the sentiment indicator falling 7.3 points to 18.5 points, while the current situation assessment remained largely unchanged at minus 14.8 points.

Gökhan Ergöçün