Expectations Go Down

The ZEW Indicator of Economic Sentiment for Germany decreased in the current April 2021 survey, falling 5.9 points to a new reading of 70.7 points. This is the first time that the indicator has experienced a drop since November 2020. Expectations are still at a very high level.

The assessment of the economic situation in Germany improved by 12.2 points compared to the previous month. The corresponding indicator currently stands at minus 48.8 points, reaching roughly the same level as in March 2020.

“The financial market experts are somewhat less euphoric than in the previous month. The ZEW Indicator of Economic Sentiment is, however, still at a very high level and the current situation is assessed much more positively than in March. Fears of a stricter lockdown have led to a decline in expectations for private consumption. Nevertheless, the outlook for exports is better than in the previous month,” ZEW President Professor Achim Wambach comments on the current expectations.

The financial market experts’ sentiment concerning the economic development of the eurozone decreased by 7.7 points in April, bringing the indicator to a current level of 66.3 points. The indicator for the current economic situation in the eurozone climbed 4.3 points to a level of minus 65.5 points.

Inflation expectations for the eurozone dropped 5.5 points. However, at 75.1 points, the corresponding indicator still points to an increase in inflation over the next six months.

More information and studies on the ZEW Indicator of Economic Sentiment and the release dates 2021 (as PDF file, 28 KB) and the historical time series (as Excel file, 81 KB)

More about Achim Wambach on Twitter: @AchimWambach