German Sentiment Deteriorates; Switzerland Lowers Outlook

Arthi Gupta
20 Sep, 2011
New York City

German and Dutch sentiment deteriorated in September and Switzerland lowered growth outlook for 2011 and 2012. Italian industrial orders rose in July. Hungary left the benchmark two-week deposit rate unchanged at 6%.

[R]3:00 PM Frankfurt – German and Dutch sentiment deteriorated in September and Switzerland lowered growth outlook for 2011 and 2012. Italian industrial orders rose in July. Hungary left the benchmark two-week deposit rate unchanged at 6%.[/R]

German Sentiment Weakens

Germany''s economic sentiment deteriorated for the seventh month in a row in September, survey results from Mannheim-based ZEW Centre for European Economic Research showed today. The index of economic sentiment fell by 5.7 points to -43.3 points in September.

The assessment of the current economic situation indicator dropped 9.9 points to 43.6 points in September.

Dutch Consumer Sentiment Drops

The consumer confidence index in the Netherlands declined 9 points to -30 in September, following a similar fall in August, data released by the Central Bureau of Statistics showed. It is the biggest decrease ever recorded for two consecutive months.

Switzerland Lowers Growth Outlook, Surplus Plunges

Switzerland''s State Secretariat for Economic Affairs downgraded 2011 and 2012 growth outlook. The federal government''s expert group projected 2011 growth at 1.9%, down from the previous estimate of 2.1%.

For 2012, expansion estimate was lowered to 0.9% compared to the previous forecast of 1.5%.

Separately, Switzerland''s trade surplus declined notably in August due to a sharp fall in exports, data from the Federal Customs Administration showed.

The trade surplus slumped to Sfr808 million in August from Sfr2.81 billion in July.

Exports fell 7% on a monthly basis in August, following a 1.4% rise in July. Imports rose 0.9% in August, reversing the 0.1% drop in July.

Sweden Growth Revised Down

Sweden''s economy grew a seasonally adjusted 0.9% in the second quarter, final data from Statistics Sweden showed. The statistics office downgraded growth from 1%.

Annual growth for the second quarter was 4.9% instead of 5.3% expansion estimated initially.

Italy Orders Rise

Italian industrial orders increased an unadjusted 6.5% from a year ago in July, data released by statistics office Istat showed on Tuesday.

New orders in the domestic market rose 4.3% and in the non-domestic market climbed 10.2% annually in July.

Hungary Holds Rate

Hungary''s central bank on Tuesday kept the benchmark two-week deposit rate unchanged at 6% today, for the eighth time in a row. The Magyar Nemzeti Bank left the two-week deposit rate unchanged in August also.

Finland Unemployment Falls

Finland''s jobless rate dropped to 6.6% in August from 7.3% in the same month last year, data released by Statistics Finland showed. The number of jobless persons decreased 10% from a year ago to 177,000 in August.