German ZEW Economic Sentiment Index Drops to 26.5 in September

Investor sentiment in Germany fell for the fourth consecutive month in September, a survey showed, as investors expected scarcity of raw materials to slow the recovery in Europe’s largest economy.

German ZEW Economic Sentiment fell to 26.5 from 40.4 in August. A Reuters poll had forecast a decline to 30.0.

“Market experts expect an improvement in the economic situation. But the scope and mechanisms of recovery have been greatly reduced,” the institute’s president, Achim Wambach, said in a statement. “The lack of chips in the auto sector and the scarcity of resources in the construction sector affected the outlook in both sectors a lot,” he added.

The institute’s current conditions sub-index rose to 31.9 from 29.3 in August, and against 34.0 estimated.

Meanwhile, The Eurozone ZEW Economic Sentiment for September contracted to 31.1 for the current month as compared to the 42.7 previous and 52.2 consensus forecast.