German investor morale fell significantly more than expected in April as businesses feel the economic consequences of the Iran war far beyond price increases, the ZEW economic research institute said today.
The reading fell to -17.2 points in April, below the -5 points expected by analysts polled by Reuters, from last month’s -0.5 points.
“The economic consequences of the Iran war for the German economy go far beyond price increases: 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.
The indicator monitoring current conditions also fell more than expected, to -73.7 points. Analysts expected a reading of -70 points.
Prospects in the chemical and pharmaceutical industries, as well as steel and metal producers, deteriorated particularly strongly, according to ZEW.
