OPINION
Market Rating Before FOMC MeetingJan 31
Economic Sentiment at 14-Year Low in Germany
The data fell 2.7 percent from minus 53.8 points the previous month, failing to catch up with expectations of minus 53.8 points.
The current circumstances indicator dropped from minus 45.8 points in July to minus 47.6 points in this time frame. The economic sentiment toward the Euro Zone fell by 7% in August compared to the prior month, to minus 54.9 points, according to the data set.
While it was revealed that economic expectations continued to lose momentum in August after a significant decrease the previous month, participants claimed that Germany's already weak economic activity is expected to decline further.
High inflation rates and additional energy-related cost forecasts have lowered private sector profit expectations, the report said, and the outlook in the financial sector has improved due to the increase in short-term interest rates.
According to the research, inflation estimates for the eurozone have risen by 2.1 percentage points. The minus 23.5 point indicator predicts a drop in high inflation rates over the following six months, indicating that we will remain in negative territory.
