The ZEW Business Sentiment Index for Germany fell 16.7 points in April, entering negative territory for the second consecutive month to reach -17.3 points, compared to a 0.5 point decline in March. This was slightly below expectations of a -5.9 point drop. The March decline was driven by a drop in the assessment of the current economic situation in Germany to -73.7 points, a decrease of 10.8 points from March, reflecting the ongoing military conflict in the Middle East, rising inflationary pressures, and the risk to Germany’s economic recovery.

Meanwhile, the index for the Eurozone fell by 11.9 points to -20.4 points, exceeding expectations of a 12.7 point decline. The assessment of the current situation index also fell by 13.1 points to -43.0.