ZEW Indicator of Economic Sentiment - Almost Unchanged Economic Expectations

The ZEW Indicator of Economic Sentiment for Germany remains almost unchanged in October 2009. It slightly declines by 1.7 points and now stands at 56.0 points after 57.7 points in the previous month. This value is still well above the indicator’s historical average of 26.7 points.

The current assessment of the financial market experts has likely been influenced by various facts. Once again the increase in incoming orders should have had a positive impact. The recent decline of exports, however, should have weakened economic expectations for Germany. Furthermore, it is still uncertain how private consumption will develop over the next months.

"The assessment of the financial market experts reflects the prevalent opinion. The economy will improve only gradually", says ZEW President Prof. Dr. Dr. h.c. mult. Wolfgang Franz.

The assessment of the current economic situation in Germany is still very poor and improves only slowly. The corresponding indicator rises slightly by 1.8 points to minus 72.2 points.

The economic expectations for the euro zone decreases in October by 2.7 points compared to the previous month. The respective indicator now stands at 56.9 points. The indicator for the current economic situation in the euro zone improves by 2.5 points and now stands at minus 75.4 points.

For further information please contact

Dr. Sandra Schmidt, E-mail: s.schmidt@zew.de

Matthias Köhler, E-mail: koehler@zew.de