Economic Sentiment Caught Up in the Brexit Vote

The ZEW Indicator of Economic Sentiment for Germany decreased sharply in July 2016. The index has decreased by 26.0 points compared to the previous month, now standing at minus 6.8 points (long-term average: 24.3 points). This is the indicator’s lowest reading since November 2012.

"The Brexit vote has surprised the majority of financial market experts. Uncertainty about the vote’s consequences for the German economy is largely responsible for the substantial decline in economic sentiment. In particular, concerns about the export prospects and the stability of the European banking and financial system are likely to be a burden on the economic outlook," comments ZEW-President Professor Achim Wambach.

The assessment of the current situation in Germany is worsening. Slightly decreasing by 4.7 points, the index now stands at 49.8 points.

Financial market experts’ sentiment concerning the economic development of the Eurozone has weakened. ZEW’s Indicator of Economic Sentiment for the Eurozone has declined considerably by 34.9 points to a reading of minus 14.7 points. Falling by 2.4 points in July 2016, the indicator for the current economic situation in the euro area has dropped to a value of minus 12.4 points.

For more information please contact

Dominik Rehse, Phone +49(0)621/1235-378, E-mail rehse@zew.de

Jesper Riedler, Phone +49(0)621/1235-379, E-mail riedler@zew.de

More information and studies on the ZEW Indicator of Economic Sentiment and the release dates 2016 (as PDF file, 28 KB).