A leading confidence index in Germany slid to its lowest level in more than 13 years this month. The drop was blamed on an economic slowdown in the US, higher interest rates and sluggish consumer demand.
The ZEW economic research institute's economic expectations index, based on a poll of 298 analysts and institutional investors, fell by 5.2 points to minus 27.4 in October.
The renewed fall in the index was unexpected. Economists had expected a slight rise to minus 20 points from minus 22.2 in September. The ZEW is now at its lowest level since March 1993.
The ZEW indicator represents the balance between positive and negative expectations for the economy over the next six months. If most analysts and institutional investors polled believe the economy will improve, the index shows a plus. If most are expecting a deterioration, the index shows a minus.
