German ZEW survey shows pick up in recovery mood in July
- July current conditions -77.6 vs -77.8 expected
- Prior -81.0
- July outlook 26.3 vs 17.5 expected
- Prior 10.5
Even with a slight rebound, current conditions remain subdued and that is reflective of the dampened economic mood as a result of the Middle East conflict. As tensions escalate once again, that is just making for a tough time for German firms. The good news at least is that the outlook is seen picking up going into July. ZEW notes that:
"The economic outlook continues to improve in July. It seems that the reforms are having an effect.. especially the export-oriented sectors as well as domestic demand exprienced sustained growth. Nevertheless, the uncertainty associated with the developments in the Iran conflict and oil prices remain a crucial factor affecting the prospects for recovery."
The thing that matter most for now is that price pressures are seen meandering ahead of the summer break. And that is what the ECB is also going to harp on later this week surely.
However, there will be lingering questions on the economic and inflation outlook once we get closer to Q4 2026 especially. And even more so if the US-Iran conflict continues to show no signs of ending until then.
This article was written by Justin Low at investinglive.com.提供 MainLink：Investinglive RSS Breaking News Feed
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