By Maria Martinez 
 

German economic expectations have plummeted in October after going up in the last two months, the ZEW economic research institute said Tuesday.

The measure of economic expectations fell to 56.1 in October from 77.4 in September, the institute said. The outcome is well below economists' forecast of 74.0 points in a survey by The Wall Street Journal.

However, the assessment of the current economic situation in Germany has improved, rising to minus 59.5 in October from minus 66.2 in September, the ZEW institute said. This reading is better than economists' forecast of minus 72.0 points.

Although the ZEW indicator of economic sentiment is still in positive territory, "the great euphoria witnessed in August and September seems to have evaporated" said Achim Wambach, president of the ZEW institute.

Mr. Wambach said the recent sharp rise in the number of coronavirus cases has increased uncertainty about future economic developments, as has the prospect of the UK leaving the European Union without a trade deal.

 

Write to Maria Martinez at maria.martinez@wsj.com

 

(END) Dow Jones Newswires

October 13, 2020 05:28 ET (09:28 GMT)

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