Down from -37.6 in August, but not quite so bad as Reuters’ median forecast of -45.0.

Current conditions index down at 43.6 from 53.5 in August, but slightly better than Reuters’ median poll of 40.0.

ZEW says:

  • European debt crisis may have caused economic expectations to weaken (yer think?)
  • Downward trend is losing momentum this month
  • Economic outlook is characterised by high degree of insecurity

And now ZEW economist:

  • Expectations are becoming bit more stable
  • There has been significant drop in inflation, ECB interest rate expectations
  • Still majority of analysts expect unchanged interest rates in next 6 months
  • There is still room for sentiment indicator to weaken, but main risks already discounted
  • European monetary union’s existence is at stake, hits confidence
  • Do not expect to see end of EMU, but risk has increased