Germans are turning increasingly pessimistic on their country's economy, as weakening emerging markets start to dampen the outlook, the latest index from the country's ZEW institute shows.
In its latest survey of financial forecasters, the ZEW economic expectations index for September showed a drop to 12.1 from 25.0 in August.
ZEW President Clemens Fuest attributed the fall to a worsening economic outlook in the developing world.
"The weakening economic development in emerging markets dampens the economic outlook for Germany's export-oriented economy. While economic growth in the second quarter was largely driven by external demand, it is becoming less likely that exports will stimulate growth in the near future," Fuest said in a statement accompanying the indexes' release.
ZEW's current conditions survey did however showed a slight bounce to 67.5 in September from 65.7 the month before and against expectations of a retreat to 64.0