German investor morale saw a significant downturn in September 2024, with the ZEW Indicator of Economic Sentiment dropping to 3.6 points, a substantial 15.6-point decrease from August. This decline represents a near-total collapse of the optimism that had been present since November 2023. The assessment of Germany's current economic situation also worsened, with its indicator falling 7.2 points to a new low of minus 84.5 points, the lowest level since May 2020. ZEW President Professor Achim Wambach commented, "The hope for a swift improvement in the economic situation is visibly fading." He added that the balance between optimists and pessimists has now leveled out, and the decline in expectations for Germany is more severe than the overall pessimism seen in the eurozone. Many respondents appear to have factored in the European Central Bank's (ECB) interest rate decision into their outlook. For the eurozone, the ZEW indicator also fell to 9.3 points, down 8.6 points from August. Additionally, the eurozone's situation indicator dropped 8.0 points to minus 40.4 points. Attribution: ZEW Subediting: M. S. Salama
