BERLIN, Aug. 12 (Xinhua) -- German investor sentiment fell more than expected in August, a survey showed on Tuesday, as disappointment over a new EU-U.S. trade deal and weak second-quarter economic data weighed on confidence.
According to the ZEW, one of Germany's leading economic research institutes, Germany's economic sentiment index dropped to 34.7 in August from 52.7 in July, when the United States and the European Union (EU) cut a framework agreement to levy a 15 percent import tariff on most EU goods.
"Financial market experts are disappointed by the announced EU-U.S. trade deal," ZEW President Achim Wambach said in a statement.
Wambach said sentiment was also dampened by the 0.1 percent contraction in the German economy in the second quarter, as U.S. demand slowed after months of frontloading purchases ahead of the tariffs. He added that expectations had worsened particularly for the chemicals and pharmaceuticals sectors, with mechanical engineering, metals and automotive industries also facing severe headwinds.
In addition, the current economic situation index of Germany fell to -68.6 in August from -59.5 in July, marking a sharp deterioration in the assessment of Europe's largest economy.
The ZEW indicator of economic sentiment for the euro area fell to 25.1 in August from 36.1 in July. This decline, which missed market expectations of 28.1, reflects a more pessimistic outlook among surveyed financial market experts. The survey also revealed a decrease in the current economic situation index, falling to -31.2 in August from -24.2 in July. ■
