The mood among analysts and German investors plunged in July due to the uncertainty created by the vote Brexit, according to a survey released on Tuesday in the first major indication of how Europe’s largest economy could go after the surprise outcome of the referendum.
ZEW in Mannheim said its monthly survey showed a drop in economic sentiment index -6.8 points in July from 19.2 the previous month. They were well below the Reuters consensus forecast for a reading of 9.0.
A separate gauge of current conditions fell to 49.8 points from 54.5 in June. The Reuters consensus forecast was for a reading of 51.8.
“Uncertainty about the consequences of voting for the German economy is largely responsible for the substantial decline in economic confidence,” he said ZEW President Achim Wambach said in a statement.
The ZEW index was based on a survey of 220 analysts and investors conducted July 4 to 18.