Economic Outlook Remains Unchanged

The ZEW Indicator of Economic Sentiment for Germany remains unchanged in the current May survey. The indicator thus stays at a level of minus 8.2 points. The long-term average is 23.4 points. The assessment of the current economic situation in Germany slightly decreased by 0.5 points, with the corresponding indicator currently standing at 87.4 points.

“The effects of the relatively positive values for German exports and production in March 2018 have been overshadowed in the most recent survey by uncertainty motivated by recent political events. The US decision to back out of the nuclear treaty with Iran and fears of a further escalation of the international trade conflict with the US, as well as a further rise of crude oil prices, have had an overall negative impact on economic expectations in Germany,” comments ZEW President Professor Achim Wambach.

The financial market experts’ sentiment concerning the economic development of the Eurozone slightly increased by 0.5 points, bringing the indicator to a current level of 2.4 points. The indicator for the current economic situation in the Eurozone saw a drop in May, decreasing by 1.6 points compared to the previous month to 56.1 points.

Since the US have pulled out of the nuclear treaty, crude oil prices have seen a significant increase. As a result, inflation expectations for Germany have also risen. The corresponding indicator now stands at 66.5 points, 12.5 points higher than in the previous month.

For more information please contact:

Frank Brückbauer, Phone +49 (0)621/1235-148, E-mail frank.brueckbauer@zew.de

Dr. Michael Schröder, Phone: +49 (0)621/1235-368, E-mail michael.schroeder@zew.de

Lea Steinrücke, Phone +49 (0)621/1235-311, E-mail lea.steinruecke@zew.de

More information and studies on the ZEW Indicator of Economic Sentiment and the release dates 2018 (as PDF file, 28 KB) and the historical time series (as Excel file, 81 KB)