ZEW Indicator of Economic Sentiment: Remaining at a High Level

The ZEW Indicator of Economic Sentiment for Germany increases in June after having declined in May. Compared with the previous month's result the indicator gains +3,3 points and is now standing at +69,6 points.

Thus, the gauge stabilises at the high level of the last months. The majority of analysts continues to expect an upward trend for the German economy within the next half year. Expectations for the Euro area increase slightly more than for Germany. After standing at +68,4 points in May this month's value is +72,5 points.

In June 306 analysts and institutional investors participated in the ZEW Financial Markets Survey which is conducted monthly by the Centre for European Economic Research (ZEW), Mannheim. The participants were asked about their medium-term expectations concerning economic activity and capital markets. The ZEW Indicator of Economic Sentiment is the balance between positive and negative expectations of the future economic development in Germany within a timeframe of six months.

The analysts believe that the positive expectations for the German economy will also support the exchange rate of the Euro. On balance 55,2 percent anticipate a further depreciation of the US dollar versus the European common currency. Optimism for the Euro has not been at a comparably high level since last September.

Contact

Dr. Felix Hüfner, E-mail: huefner@zew.de

Volker Kleff, E-mail: kleff@zew.de