MNI 5 THINGS: German Investor Econ Sentiment Slows In March

--5 Things We Learned From the ZEW Economic Sentiment Indicator

By Christian Vits

     FRANKFURT (MNI) - The following are the key points from the March data on

the Investors' outlook for the German economy:

     - The ZEW Indicator of Economic Sentiment for Germany decreased sharply in

March. The index fell 12.7 points compared to the previous month, now standing

at 5.1 points (long-term average: 23.6 points), the lowest reading since October

2016.

     - Concerns over a global trade conflict and currency strength are starting

to build. "Concerns over a US-led global trade conflict have made the experts

more cautious in their prognoses," ZEW President Achim Wambach commented. "The

strong euro is also hampering the economic outlook for Germany, a nation reliant

on exports." Given the continued positive assessment of the current situation,

however, the outlook is still largely positive, he added.

     - The current situation in Germany experienced a decline as well, with the

corresponding indicator decreased by 1.6 points to a level of 90.7 points.

     - Concerns surrounding a looming trade war with the U.S. also dampened the

outlook for the Eurozone, with the indicator dropping 15.9 points to a reading

of 13.4 points. The experts' assessment of the current economic situation in the

Eurozone fell 1.5 points to a level of 56.2 points.

     - The European Central Bank recently repeatedly warned that new trade

barriers and a sustained appreciation of the euro could cloud the economic

outlook for the currency bloc, particularly if the risk of retaliation across

other goods and an escalation of trade tensions materializes.

--MNI Frankfurt Bureau; +49 69 97782671; email: christian.vits@marketnews.com

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