Economics
Investor Hopes for German Economy Drop Amid Virus Resurgence
- Expectations gauge dropped to 56.1 in October vs. estimate 72
- Bundesbank warns of trouble for lenders from company failures
A health worker administers a Covid-19 swab test through a window of a doctors surgery in Berlin, on Oct. 12.
Photographer: Liesa Johannssen-Koppitz/BloombergThis article is for subscribers only.
Investor confidence in the outlook for Germany’s economy plunged, in a sign of concern that resurgent infections could hurt the recovery.
A gauge by the ZEW dropped to 56.1 in October -- the lowest in five months -- from 77.4 in September, below even the most pessimistic estimate in a Bloomberg survey. The measure for the euro area also dropped. The loss of confidence came alongside a report from the country’s central bank warning of strains in the financial system from company failures and debt problems.