Germany's ZEW sentiment index fell to 28.1 in October against a 30.0 consensus, even as current conditions hit a three-year high. France's spread over Germany, near 157 basis points, says fiscal risk is outweighing the factory upturn.
German factory-gate inflation is back at its fastest annual pace since March 2023, driven by energy and mineral-oil products that former NBU governor Kyrylo Shevchenko calls a supply shock the ECB cannot print away. Source
Germany's October ZEW survey, the Centre for European Economic Research's monthly poll of financial analysts, sent two signals pointing in opposite directions. Economic sentiment dropped to 28.1 from 34.7, short of the 30.0 Reuters consensus and the end of five straight gains. Current conditions went the other way. That index rose 11.2 points to −35.9, its best level in more than three years, though it is still deeply negative.
