ZEW Indicator of Economic Sentiment: Further Upward Leap

The ZEW Indicator of Economic Sentiment again rises sharply. The index now stands at +71.2 points, which is equivalent to an increase of +21.0.

This places the index at the level of July 2000 and signals optimism for the German economic outlook for the second half of the year 2002.

According to the surveyed analysts, the positive economic outlook for Germany should also be reflected in a future appreciation of the euro vis-à-vis the US-dollar. Approximately one half of the participants expects a higher euro exchange rate six months from now, while only 11 percent believe that the euro will depreciate further.

In March 316 analysts and institutional investors participated in the ZEW Financial Markets Survey which is conducted monthly by the Centre for European Economic Research (ZEW), Mannheim. The participants were asked about their medium-term expectations concerning economic activity and capital markets. The ZEW Indicator of Economic Sentiment is the balance between positive and negative expectations of the future economic development in Germany within a timeframe of six months.

Contact

Dr. Felix Hüfner, E-mail: huefner@zew.de

Volker Kleff, E-mail: kleff@zew.de