German ZEW Economic Sentiment Index declines in May

The German ZEW headline figure revealed that the Economic Sentiment Index fell substantially in May, falling to -10.7 from 4.1 in April, falling short of the market forecast of -5.5.

Meanwhile, the Current Situation Index rose to -34.8 from -32.5, above the market forecast of -37.5.

During the same time period, the Eurozone ZEW Economic Sentiment Index fell to -9.4 from 6.4, falling short of expectations of 8.2.

Indicator of economic sentiment has once again fallen sharply.

Financial market experts anticipate a worsening of the already unfavorable economic situation in the next six months.

German economy could slip into a recession, albeit a mild one.

Sentiment indicator decline is partly due to expectations of further interes rate hikes by the ECB.