Germany's economic sentiment improves slightly in September

By Mucahithan Avcioglu

ISTANBUL (AA) — The economic sentiment index in Germany slightly improved by 2.6 points to 37.3 points month-on-month in September, the ZEW institute said on Tuesday.

The markets had expected the index to decline to 25.3 points for this month.

However, the assessment of the current economic situation continues to deteriorate, the institute said.

The index for the current economic situation in the country dropped 7.8 points to minus 76.4 in September.

ZEW President Professor Achim Wambach said financial market experts are cautiously optimistic, but the economic situation has deteriorated.

"There are still considerable risks, as uncertainty about the US tariff policy and Germany’s ‘autumn of reforms’ continues,” he said.

The outlook has improved, particularly for export-oriented sectors that had recently experienced a significant decline. The automotive, chemical, and pharmaceutical industries, as well as the metal sector, stand to benefit the most.

"Nevertheless, the three indicators for these industries continue to be in the negative range," it noted.

Meanwhile, economic sentiment in the euro area also rose by 1 point to 26.1 points over the same period.

The current economic situation for the eurozone also improved by 2.4 points to minus 28.8 points in September.