Economic Expectations Rise Sharply

The ZEW Indicator of Economic Sentiment for Germany increased by 22.5 points to a value of minus 36.7 points in the current November 2022 survey. The assessment of the economic situation in Germany also improved and currently stands at minus 64.5 points, 7.7 points higher than in the previous month. The economic outlook for Germany has thus improved significantly compared to October, but still remains negative.

“The ZEW Indicator of Economic Sentiment rises again in November. This is likely to be related above all to the hope that inflation rates will fall soon. In this case, policymakers would not have to hit the brakes on monetary policy as hard and/or for as long as feared. However, the economic outlook for the German economy is still clearly negative,” comments ZEW President Professor Achim Wambach on current expectations.

The financial market experts’ sentiment concerning the economic development of the eurozone rose by 21.0 points to a value of minus 38.7 points in November. The situation indicator also recorded an increase and currently stands at minus 65.1 points, 5.5 points above the previous month’s value.

Inflation expectations for the eurozone declined significantly again in November. They currently stand at minus 52.2 points, 16.4 points below the October value.

More information and studies on the ZEW Indicator of Economic Sentiment and the release dates 2023 (as PDF file, 28 KB) and the historical time series (as Excel file, 81 KB)