Economics
German Investor Confidence Drops as Volkswagen Woes Damp Outlook
- ZEW index declines to one-year low of 1.9 in October
- China slowdown and Volkswagen scandal weigh on sentiment
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German investor confidence fell to the lowest level in a year as Europe’s largest economy faces the fallout of Volkswagen AG’s emissions scandal and weaker growth in emerging markets.
The ZEW Center for European Economic Research in Mannheim said its index of investor and analyst expectations, which aims to predict economic developments six months ahead, slid to 1.9 in October from 12.1 in September. That’s the seventh consecutive decline and compares with an estimated drop to 6.5 in a Bloomberg survey of economists.