ZEW Indicator of Economic Sentiment - Expectations Diminish Slightly

The ZEW Indicator of Economic Sentiment for Germany decreased by 2.1 points in February 2010. The indicator now stands at 45.1 points after 47.2 points in the previous month. This value is well above the indicator’s historical average of 27.1 points.

Thus, the financial market experts expect the economy to recover slowly from the crisis within the next six months. Nevertheless, prospects for the retail and consumer goods sector and for the automotive industry remain poor. Moreover, compared to the previous month the experts utter a more pessimistic, though generally positive view towards the business conditions in the export-oriented steel and chemicals sectors.

"Expectations remain without greater movements on an acceptable level. Though we have passed through the deepest valleys of the depression, the worries about the labour market, budget deficits and the euro have not lessened. There is the option that economic activity will move sideways with only minor ups and downs," says ZEW President Prof. Dr. Dr. h.c. mult. Wolfgang Franz.

The assessment of the current economic situation in Germany improved slightly in February. The corresponding indicator rose by 1.8 points to minus 54.8 points. The economic expectations for the euro zone decreased considerably in February by 6.2 points. The respective indicator now stands at 40.2 points. The indicator for the current economic situation in the euro zone improved by 0.6 points and now stands at minus 62.1 points.

For further information please contact

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

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