FRANKFURT, April 21 (Xinhua) -- Economic sentiment in Germany has fallen to its lowest level since December 2022, according to a survey released on Tuesday, as escalating conflict in the Middle East fuels growing pessimism.
The indicator of economic sentiment for Germany dropped by 16.7 points to minus 17.2 points in April, marking its second consecutive monthly decline, the Leibniz Centre for European Economic Research (ZEW) reported.
Expectations across key industrial sectors weakened sharply. Sentiment in steel and metal manufacturing fell by 21 points, while outlooks in the chemical and pharmaceutical industries declined by 11 points. Construction also slipped into negative territory, the survey showed.
ZEW President Achim Wambach said the findings highlight the expanding impact of the Iran conflict on Germany's business cycle, extending far beyond rising prices alone.
Meanwhile, the German Chamber of Commerce and Industry (DIHK) warned that the conflict is triggering a "noticeable chain reaction" in the domestic economy, leading to "significant cost increases" for businesses.
A DIHK survey released on the same day found that 83 percent of German companies are experiencing negative business effects, with the figure rising to 87 percent among industrial firms.
"We are seeing a double shock from rising costs and growing uncertainty," said Volker Treier, head of foreign trade at DIHK. He added that many companies are already responding with price increases and reduced investment, which could further weigh on Germany's economic outlook. ■
