German economic sentiment remains weak in June

Despite a slight rise from a month ago, Germany’s economic sentiment remained weak in June, according to data released on Tuesday.

The Leibniz Centre for European Economic Research’s (ZEW) indicator of economic sentiment for Germany rose to minus 8.5 in June from minus 10.7 in May.

June’s reading was better than the market forecast of minus 13.1.

Financial markets do not expect a recovery in the economic situation during the second half of the year, ZEW head Achim Wambach stressed.

“Particularly, sectors focused on exports are likely to perform poorly due to a weak global economy. However, the current recession is generally not considered particularly alarming,” Wambach said.

An index of current conditions declined sharply in Germany to minus 56.5 points in June, falling 21.7 points from a month earlier.

Europe’s largest economy entered a recession, posting contraction for two consecutive quarters.

The ZEW indicator of economic sentiment for the eurozone plunged into negative territory, down to minus 10 in June from minus 9.4 in May.