Expectations stagnate at elevated levels

The ZEW Indicator of Economic Sentiment for Germany hardly changed in the current June 2024 survey. At 47.5 points, it is 0.4 points above the May value. In contrast, the assessment of the economic situation in Germany has slightly deteriorated. The corresponding indicator fell by 1.5 points to a new value of minus 73.8 points.

“Both the sentiment and the situation indicators stagnate. These developments must be interpreted in the context of a constant situation indicator for the eurozone as a whole. In contrast, the inflation expectations of the respondents increase, which is likely related to the inflation rate in May, which turned out higher than what was expected,” comments ZEW President Professor Achim Wambach on the survey results.

The financial market experts’ sentiment concerning the economic development of the eurozone experienced a slight increase in June. At 51.3 points, the indicator went up 4.3 points compared to May. At the same time, the situation indicator for the eurozone did not change, staying at a reading of minus 38.6 points.