MOSCOW, August 12 (RIA Novosti) - In August 2014 the ZEW Indicator of Economic Sentiment for Germany declined dramatically, reaching its lowest level since December 2012, the Center for European Economic Research said in a press release Tuesday.
“The decline in economic sentiment is likely connected to the ongoing geopolitical tensions that have affected the German economy by now. In particular, current figures on industrial production and incoming orders suggest markedly reduced investment activities on the part of German firms against the backdrop of uncertain sales prospects,” the press release said.
According to the data, the ZEW Indicator is currently 8.6 points, as opposed to its long-term average of 24.6 points. The August decline of 18.5 points is the largest drop since June 2012.
The document states that the ZEW Indicator of Economic Sentiment for the Eurozone has also declined this August, losing 24.4 points from July, now at 23.7 points.
The ZEW indicator calculates the difference between the share of analysts that are optimistic and those that are pessimistic about the expected economic development of a country over the next six months. The indicator is calculated for Germany, Japan, the United Kingdom, the United States and the Eurozone.
