Economics
German Investor Mood Sours Further Amid War-Driven Inflation
- ZEW expectations gauge falls to -41; economists saw -48.5
- Stagflation still possible in next six months, ZEW chief says
Customers drink outdoors at a restaurant terrace that overlooks a shopping plaza in Baden Baden, Germany.
Photographer: Ben Kilb/BloombergThis article is for subscribers only.
Confidence in Germany’s economic recovery slid for a second month as investors worry that price spikes driven by Russia’s war in Ukraine will dampen output.
The ZEW institute’s gauge of expectations dropped to -41 in April from -39.3 the previous month, hitting the lowest level since the Covid-19 pandemic erupted in 2020. An index of current conditions also worsened.