Expectations Rise Slightly

The ZEW Indicator of Economic Sentiment for Germany recorded a slight increase in the current June 2023 survey. At minus 8.5 points, it is 2.2 points above the previous month’s value. In contrast, the assessment of the economic situation in Germany declined very sharply. The corresponding indicator fell 21.7 points to a new value of minus 56.5 points.

“The ZEW Indicator of Economic Sentiment shows a slight improvement, but it remains in negative territory. This means that experts do not anticipate an improvement in the economic situation during the second half of the year. Particularly, sectors focused on exports are likely to perform poorly due to a weak global economy. However, the current recession is generally not considered particularly alarming,” comments ZEW President Professor Achim Wambach on the survey results.

The financial market experts’ sentiment concerning the economic development of the eurozone slightly decreases in June and currently stands at minus 10.0 points, 0.6 points below the previous month’s value. The situation indicator for the eurozone decreased, dropping 14.4 points to a new reading of minus 41.9 points.

Experts’ expectations for monetary policy reveal diverging trends for the eurozone and the USA. The balance for short-term interest rates in the eurozone stands at 72.3 points, indicating an anticipated further increase in interest rates. Conversely, experts foresee no change in short-term interest rates for the USA, as indicated by a balance of 16.6 points.