Multiple adverse factors have caused the decline in confidence among German investors to be greater than expected.

Jin10 data reported on August 12 that Germany’s August ZEW investor confidence declined more than expected, due to widespread disappointment with the US-EU trade agreement and weak economic performance in Germany during the second quarter. ZEW President Achim Wambach stated: “Financial market experts are disappointed with the announced EU-US trade agreement. (Last month, the US reached a framework trade agreement with the EU, imposing a 15% import tariff on most EU goods.)” Wambach also mentioned that this decline was also due to the poor performance of the German economy in the second quarter. The German economy contracted by 0.1% in the second quarter, as demand slowed after a significant increase in purchases by the US in anticipation of tariffs in the previous months. Additionally, the assessment of the current economic situation has significantly deteriorated, dropping from -59.5 last month to -68.6.