- Stephen King, chief global economist at HSBC
Economic sentiment in Europe's powerhouse continued to deteriorate in September amid concerns over slowing demand in emerging economies, which dampens the economic outlook for Germany's export-oriented economy. According to the ZEW survey, the economic sentiment index for Germany fell to 12.1 points in September, down from the previous month when the reading stood at 25 points. However, the assessment of the current situation in Germany has improved slightly, increasing by 1.8 points to 67.5 points. At the same time, the sentiment concerning the economic development of the whole Euro zone has weakened, as the ZEW Indicator decreased by 14.3 points to a reading of 33.3 points.
Meanwhile, the recent employment figures from the Euro area revealed that recovery continued in the second quarter, though growth remains weak. Employment increased by 0.3% in the 19 countries sharing the Euro and by 0.2% in 28 countries of the Union in the April-June period. On an annual basis, the gauge added 0.8% in the Euro zone and 0.9% in the EU. Another positive release by the Eurostat showed that the trade surplus in the Euro area widened to 22.4 billion euros in July on rising exports and cheaper energy.
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