Germany's investor confidence dropped sharply in August to its lowest level since the end of 2011, survey data from the ZEW - Leibniz Centre for European Economic Research showed Tuesday.
The ZEW Indicator of Economic Sentiment for Germany tumbled to -44.1 from -24.5 in July, reaching its lowest level since December 2011.
Economists had forecast a score of -28. The long-term average of the indicator is 21.6 points.
The current conditions index of the survey fell to -13.5 from -1.1 in the previous month. The score was the lowest since May 2010. Economists had expected a reading of -5.9.
"The ZEW Indicator of Economic Sentiment points to a significant deterioration in the outlook for the German economy," ZEW President Achim Wambach said.
The most recent escalation in the trade dispute between the US and China, the risk of competitive devaluations, and the increased likelihood of a no-deal Brexit place additional pressure on the already weak economic growth, he noted.
"This will most likely put a further strain on the development of German exports and industrial production," Wambach added.
The investor confidence index for Eurozone dropped to -43.6 from -20.3 in July. The current situation measure shed 3.9 points to -14.5.
The results are based on the ZEW Financial Market Test conducted monthly among up to 300 experts from banks, insurance companies and financial departments of selected corporations.