Euro-Area Engine Sputters as German Downturn Risk Sharpens
- ZEW index slumps to lowest in more than five years on trade
- One German recession gauge has started to flash ‘orange’
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The euro area’s economic expansion is standing on increasingly shaky ground after reports showed German investor confidence tumbling to its lowest level since late 2012 and the risk of a recession in the nation jumping.
The sentiment gauge from ZEW showed more investors now see a worsening in Europe’s largest economy than forecast an improvement, a mood swing that ZEW President Achim Wambach blamed on the U.S. trade dispute combined with weak domestic retail and production numbers.