Economic Expectations Improve Slightly

The ZEW Indicator of Economic Sentiment for Germany recorded an increase of 3.1 points in September 2018 and now stands at minus 10.6 points. The indicator has thus recovered from its low point in July 2018, making a leap of 14.1 within the last two months. However, the indicator is still clearly in negative territory and remains well below the long-term average of 22.9 points. The assessment of the current economic situation in Germany has increased by 3.4 points, leaving the corresponding indicator at 76.0 points.

“During the survey period, the currency crises in Turkey and Argentina intensified, while German industrial production and incoming orders were surprisingly low in July. Despite these unfavourable circumstances, economic expectations for Germany improved slightly. The considerable fears displayed by the survey participants regarding the economic development have diminished somewhat, which may in part be attributable to the new trade agreement between the USA and Mexico,” comments ZEW President Professor Achim Wambach.

The financial market experts’ sentiment concerning the economic development of the Eurozone has also improved, with the corresponding indicator climbing 3.9 points to a level of minus 7.2 points. Meanwhile, the indicator for the current economic situation in the Eurozone has increased slightly, rising by 1.7 points to a reading of 31.7 points. Inflation expectations for the Eurozone have seen a considerable decline, with the corresponding indicator falling by 8.7 points to a reading of 24.0 points.

For more information please contact:

Frank Brückbauer, Phone +49 (0)621/1235-148, E-mail frank.brueckbauer@zew.de

Dr. Frederick Eidam, Phone +49 (0)621-1235-330, E-mail frederick.eidam@zew.de

Dr. Michael Schröder, Phone: +49 (0)621/1235-368, E-mail michael.schroeder@zew.de

More information and studies on the ZEW Indicator of Economic Sentiment and the release dates 2018 (as PDF file, 28 KB) and the historical time series (as Excel file, 81 KB)