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German business sentiment deteriorates more than expected in August - ZEW

Frankfurt

German business sentiment deteriorated more than expected in August amid disappointment over the US-EU trade deal, according to a survey released on Tuesday by the ZEW Center for European Economic Research in Mannheim.

12 August 2025 10:49:20

Source: Sharecast

The ZEW economic sentiment indicator fell to 34.7 from 52.7 in July. Meanwhile, the index for the current economic situation declined to -68.6 in August from -59.5 the month before.

ZEW President Achim Wambach said: "Financial market experts are disappointed from the announced EU-US trade deal. In August 2025, the ZEW indicator experiences a substantial decline, also due to the poor performance of the German economy in the second quarter of 2025.

"The outlook has worsened in particular for the chemical and pharmaceutical industries. The mechanical engineering and metal sectors as well as the automotive industry are also severely affected."

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