Germany's economic sentiment took a significant hit in September, with the ZEW Economic Sentiment Index plummeting to 3.6 points, down from 19.2 in August and far below expectations of 17.1. This marks the lowest level since October 2023, indicating a growing pessimism among financial experts regarding the economic outlook. The sub-index for current conditions also dropped sharply to -84.5, the weakest reading since May 2020. ZEW President Achim Wambach noted that hopes for a swift recovery are fading, as expectations deteriorate particularly in industries like mechanical engineering, steel, and automotive. The negative trend in Germany's economy is impacting the eurozone, where the sentiment index fell to 9.3 points. Additionally, the European Central Bank's stance on interest rates suggests that no cuts are likely until December, adding to the economic uncertainty.