By Maria Martinez
BERLIN (Reuters) -German investor morale fell more than expected in August, the ZEW economic research institute said on Tuesday citing widespread disappointment with the US-EU trade deal and sluggish economic performance in Germany in the second quarter.
The economic sentiment index fell to 34.7 points from 52.7 points in July, while analysts polled by Reuters had pointed to a reading of 39.8.
“Financial market experts are disappointed by the
announced EU–US trade deal,” said ZEW President Achim Wambach.
The U.S. struck a framework trade agreement with the European Union last month, imposing a 15% import tariff on most EU goods.
The decline is also due to the poor performance of the German economy in the second quarter, Wambach said.
Germany’s economy contracted by 0.1% in the second quarter, as demand from the United States slowed following months of strong purchases in anticipation of U.S. tariffs.
The survey’s assessment of the current economic situation also deteriorated significantly, with the indicator falling to minus 68.6 from minus 59.5 points the previous month.
(Reporting by Maria Martinez, Writing by Friederike Heine, Editing by Rachel More)
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