Expectations Fall for the First Time in a Year

The ZEW Indicator of Economic Sentiment for Germany recorded a decline in the July 2024 survey for the first time since July 2023. At 41.8 points, it is 5.7 points below the June value. In contrast, the assessment of the economic situation in Germany slightly improved. The corresponding indicator rose by 4.9 points to a new value of minus 68.9 points.

“The economic outlook is worsening. For the first time in a year, economic expectations for Germany are falling. The fact that German exports decreased more than expected in May, the political uncertainty in France and the lack of clarity regarding the future monetary policy by the ECB have contributed to this development,” 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 decrease in July. At 43.7 points, the indicator lost 7.6 points compared to June. In contrast, the situation indicator for the eurozone changed only marginally, climbing 2.5 points to a new reading of minus 36.1 points.