Expectations Continue to Rise, Situation Stable

The ZEW Indicator of Economic Sentiment for Germany again recorded an increase in the current November 2023 survey. At 9.8 points, it is 10.9 points above the previous month’s value and is back in positive territory for the first time since April. In contrast, the assessment of the economic situation in Germany barely changed. The corresponding indicator increased by 0.1 points and currently stands at minus 79.8 points.

“Economic expectations for Germany have again increased. At the same time, the assessment of the current situation remains unchanged at a low level. These observations support the impression that the economic development in Germany has bottomed out. The unchanged assessment of the current situation is particularly remarkable given the deterioration in the assessment of the overall economic situation in the eurozone. The heightened economic expectations are accompanied by significantly more optimistic outlooks for the German industrial sector and both domestic and foreign stock markets. Inflation and short- and long-term interest rates also appear to have reached turning points in expectations”, comments ZEW President Professor Achim Wambach on the survey results.

The financial market experts’ sentiment concerning the economic development of the eurozone also experienced a considerable increase in November. At 13.8 points, the indicator rose by 11.5 points compared to the previous month and is now clearly in positive territory. In contrast, the situation indicator for the eurozone dropped by 9.4 points to a new reading of minus 61.8 points. This must be taken into account when assessing the increased expectations.