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Emissions scandal hits German investor confidence

Morale among German analysts and investors plummeted in October as the diesel emissions scandal at carmaker Volkswagen and weakness in emerging markets took their toll, a survey by ZEW think tank showed on Tuesday.

Mannheim-based ZEW said its monthly survey showed economic sentiment falling to 1.9 points in October from 12.1 in September. That was far below the consensus forecast for a reading of 6.0.

The Brandenburg Gate in Berlin, Germany
Getty Images
The Brandenburg Gate in Berlin, Germany

"The emissions scandal at Volkswagen and sluggish growth in emerging markets are dampening the economic outlook for Germany," ZEW said in a statement.

A separate gauge tracking current conditions dropped to 55.2 points from 67.5 points in September, undershooting expectations for a drop to 64.7.