Germany economic sentiment hits 3-year low in November – survey

15 November 2011 15:35  [Source: ICIS news]

LONDON (ICIS)--Germany’s economic sentiment fell to a three-year low in November amid uncertainty from the government debt crises in Greece and Italy, a research group said on Tuesday.

Mannheim-based ZEW Centre for European Economic Research said its economic sentiment indicator for Germany fell for the ninth month in a row in November - to minus 55.2 points, down 6.9 points from October.

World trade is weakening and the public debt problems in the eurozone and in the US weigh heavily on business activity,” said ZEW president Wolfgang Franz.

“These risks could even gain more importance and thus could further harm economic growth in Germany," Franz added.

The ZEW index is based on a survey of about 280 financial market analysts.

In related news on Tuesday, Berlin-based economic research group DIW said that after official data showed Germany’s GDP had grown 0.5% in the third quarter from the second, growth in the current fourth quarter could stagnate.

“Fourth-quarter GDP growth is likely to be weak, mainly because of the crisis in the eurozone,” said DIW’s chief economist, Ferdinand Fichtner.

“People are uncertain as to what’s coming next, and that is poison for the economy,” he added.

Fichtner also said that Germany’s third-quarter GDP growth was primarily because of a strong performance in July. In August and September, however, industrial production had already weakened, he said.

Read Paul Hodges’ Chemicals and the Economy Blog

By: Stefan Baumgarten
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