ZEW Index Shows German Investor Morale at Three-Year Low

Investor sentiment in Germany has plummeted to its lowest level in more than three years this April, as the economic ramifications of the conflict in Iran begin to weigh heavily on the business outlook. The ZEW economic research institute reported on Tuesday that its morale index fell to minus 17.2 points, a sharp decline from the minus 0.5 points recorded last month and significantly lower than the minus 5.0 points anticipated by analysts. This represents the weakest reading since December 2022.

Businesses are concerned about long-term shortages of energy supply, and this discourages investment and weakens the effect of government stimuli, said ZEW president Achim Wambach.