Economic Sentiment Remains Stable
ZEW Indicator of Economic Sentiment
The ZEW Indicator of Economic Sentiment for Germany improved slightly by 2.4 points in March 2017, with the indicator now standing at 12.8 points. The long-term average, which has been calculated since the survey was begun, is 23.9 points. "The fact that the ZEW Indicator of Economic Sentiment only shows a slight upward movement is a reflection of the current uncertainty surrounding future economic development. With regard to the economic situation in Germany, no clear conclusions can be drawn from the most recent economic signals for January 2017. While industrial production and exports witnessed a positive development, the figures for incoming orders and retail sales were less favourable. The political risks resulting from upcoming elections in a number of EU countries are keeping uncertainty surrounding the German economy at a relatively high level," comments ZEW President Professor Achim Wambach, PhD.
The assessment of the current economic situation in Germany has slightly improved in March. The corresponding indicator has climbed by 0.9 points to 77.3 points. This is at a very high level in comparison to many previous years.
Economic figures for January 2017, however, show that conditions for German companies could worsen. Production figures are down in several important neighbouring countries within the eurozone, which could have a negative impact on exports. Furthermore, costs for German companies also rose as a result of increasing labour costs and import prices.
The financial market experts' expectations regarding economic development in the eurozone improved considerably in March by 8.5 points, bringing the expectation indicator up to a current level of 25.6 points. The indicator for the current economic situation in the eurozone also improved significantly in March. It now stands at 7.4 points, 4.6 points higher than in February.
For further information please contact
Dr. Michael Schröder, Phone +49 (0)621/1235-368, E-mail schroeder@zew.de
Lea Steinrücke, Phone +49 (0)621/1235-311, E-mail steinruecke@zew.de
More information and studies on the ZEW Indicator of Economic Sentiment and the release dates 2017 (as PDF file, 28 KB) and the historical time series (as Excel file, 81 KB)