- Prior -0.5
- Current conditions -73.7 vs -70.0 expected
- Prior -62.9
That’s the worst reading since December 2022 as the fallout from the US-Iran conflict continues to weigh heavily on German investor morale. Surging energy prices is the key issue and that’s reverberating across to many parts of the economy, even with gas prices coming off the boil in recent weeks. The damage is already done.
Adding to that, the relative uncertainty of the war and the impact it will have on the inflation and general economic outlook are still key concerns that has to be addressed in due time. For now, even the ECB is not willing to take any chances in rushing a decision for the April meeting it would seem.
And every day the Strait of Hormuz remains closed, it just adds to the mounting risks of the conflict having a more profound impact on global energy supply and the world economy.
