German economic confidence declined for the first time in a year in July amid weak exports, political uncertainty and the lack of clarity about the future monetary policy, survey data from the ZEW economic research institute showed Tuesday.
The economic sentiment index fell sharply to a four-month low of 41.8 in July from 47.5 in the previous month. The score was forecast to drop moderately to 41.2.
By contrast, current situation improved slightly in July. The corresponding index rose to -68.9 from -73.8 in June. The reading was seen at -74.3.
\"The economic outlook is worsening,\" ZEW President Achim Wambach said.
\"The fact that German exports decreased more than expected in May, the political uncertainty in France and the lack of clarity regarding the future monetary policy by the ECB have contributed to this development,\" Wambach added.
Sentiment concerning the economic development of the euro area also deteriorated in July. At 43.7, the confidence index lost 7.6 points. At the same time, the situation indicator for the euro area rose 2.5 to -36.1 in July.