Expectations Decrease

The ZEW Indicator of Economic Sentiment for Germany recorded a decrease in the current July 2023 survey. At minus 14.7 points, it is 6.2 points below the previous month’s value. The assessment of the economic situation in Germany also worsened. The corresponding indicator fell 3.0 points to a new value of minus 59.5 points.

“The ZEW Indicator of Economic Sentiment is shifting even more noticeably into negative territory. Financial market experts predict a further deterioration in the economic situation by year-end. A key reason for this is the expectation of rising short-term interest rates in the eurozone and the USA. Additionally, important export markets like China are seen as relatively weak. The industrial sectors are likely to bear the brunt of the anticipated economic downturn, with profit expectations for these export-oriented industries experiencing a substantial decline once again,” comments ZEW President Professor Achim Wambach on the survey results.

The financial market experts’ sentiment concerning the economic development of the eurozone slightly worsens in July and currently stands at minus 12.2 points, 2.2 points below the previous month’s value. The situation indicator for the eurozone decreased, dropping 2.5 points to a new reading of minus 44.4 points.