ZEW Indicator of Economic Sentiment - Economic Expectations Stabilise

The ZEW Indicator of Economic Sentiment for Germany remained almost unchanged in September 2009. The indicator rose by 1.6 points and now stands at 57.7 points after 56.1 points in the previous month. This value is well above the indicator’s historical average of 26.6 points.

The current development of the indicator shows that the the financial experts’ positive economic expectations have further stabilised. The economic outlook for Germany mainly depends on the recovery of the world economy and better prospects for German exporters. Furthermore, the financial experts are more optimistic about private consumption, although the prospects for the next six months are burdened by the end of the auto wrecking bonus and by an anticipated rise of unemployment.

"The economic expectations for Germany are consistent with the picture that the German economy is recovering, but at a slow pace. With regard to the national debt additional government stimulus packages are not appropriate", says ZEW President Prof. Dr. Dr. h.c. mult. Wolfgang Franz.

The assessment of the current economic situation in Germany improved in September. The corresponding indicator rose by 3.2 points to minus 74.0 points.

The economic expectations for the euro zone rose in September by 4.7 points compared to the previous month. The respective indicator now stands at 59.6 points. The indicator for the current economic situation in the euro zone improved by 4.2 points and now stands at minus 77.9 points.

For further information please contact

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

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