ZEW Indicator of Economic Sentiment - Economic Recovery Slows Down

The ZEW Indicator of Economic Sentiment for Germany drops by 17.1 points in June 2010. The indicator now stands at 28.7 points after 45.8 points in the previous month. This value is slightly above the indicator’s historical average of 27.4 points.

Thus, the financial market experts expect the German economic recovery that can be observed in the second quarter 2010 to weaken towards the end of this year. Despite the decrease of the economic expectations, the economic outlook still remains positive. Nevertheless, the economic sentiment is weakened by the uncertainty about the future developments of the debt crisis and the perspective of necessary cuts in public expenditure in EU-member countries.

"The current recovery is still fragile. Fiscal policy is therefore well advised to define necessary consolidation measures now, but to implement them not until 2011," says ZEW President Prof. Dr. Dr. h.c. mult. Wolfgang Franz.

Once again, the assessment of the current economic situation in Germany improves considerably. In June the corresponding indicator rises by 13.7 points to minus 7.9 points. The economic expectations for the euro zone decline by 18.8 points in June. The respective indicator now stands at 18.8 points. The indicator for the current economic situation in the euro zone improves by 7.7 points and now stands at minus 40.8 points.

For further information please contact

Christian David Dick, E-Mail: dick@zew.de  

Frieder Mokinski, Phone: +49 (0)621/1235-143, E-Mail: mokinski@zew.de