German investor morale worsens on coronavirus fears

19 February, 2020 12:00 AM printer

BERLINE: The mood among German investors deteriorated far more than expected in February on worries that China’s coronavirus outbreak would dampen world trade and deepen a manufacturing recession in Germany.

The ZEW research institute said its monthly survey showed economic sentiment among investors fell to 8.7 from 26.7 in January. Economists had expected a drop to 21.5, report agencies.

The survey adds to expectations that Europe’s biggest economy will continue to lose momentum in the first half of 2020 as its manufacturers linger in a recession prompted by a reduction in exports.

“The feared negative effects of the coronavirus epidemic in China on world trade have been causing a considerable decline of the indicator of economic sentiment for Germany,” said ZEW President Achim Wambach.