The economic prospects for Germany’s economy are currently not particularly rosy. But now there is at least a ray of hope. ZEW’s mood barometer has unexpectedly brightened.
The economic expectations of financial experts in Germany unexpectedly brightened in September. The sentiment barometer from the ZEW research institute rose by 0.9 points to minus 11.4 points compared to the previous month, as reported by the Center for European Economic Research (ZEW) in Mannheim. Analysts on average had expected a deterioration to minus 15.0 points.
The economic situation is deteriorating significantly
However, the assessment of the economic situation in Germany deteriorated significantly. The corresponding index value fell by 8.1 points to minus 79.4 points. This is the lowest level in three years. Economists had only expected a decline to minus 75.5 points.
“The more positive economic expectations for Germany are accompanied by a significantly more optimistic outlook regarding developments on the international stock markets,” commented ZEW President Achim Wambach. “This is at least partly due to the fact that the proportion of respondents who expect stable interest rates in the euro area and the USA has continued to rise.” However, the decline in the assessment of the situation puts the increase in expectations into perspective, said Wambach.
Source: Stern
