Optimistic Outlook for the New Year

The ZEW Indicator of Economic Sentiment for Germany climbed 3.0 points in January 2018, currently standing at 20.4 points. The indicator thus still remains slightly below the long-term average of 23.7 points. The assessment of the current economic situation in Germany increased by 5.9 points, with the corresponding indicator currently standing at 95.2 points.

“The latest survey results reveal an optimistic outlook for the German economy in the first six months of 2018. With 95.2 out of 100 points, this is the most positive assessment of the current economic situation since the introduction of the survey in December 1991. Private consumption, which was the most important driver of economic growth in 2017, is likely to continue to stimulate growth in the coming six months according to the survey participants. The assessment of the global economic environment in Europe and the USA is also much more favourable than it was at the end of 2017,” comments ZEW President Professor Achim Wambach.

The financial market experts’ sentiment concerning the economic development of the Eurozone increased by 2.8 points, currently standing at a level of 31.8 points. The indicator for the current economic situation in the Eurozone also continued to improve in January, leaving the index at a level of 56.4 points, 5.7 points higher than in December. The economic expectations for the Eurozone are thus fairly positive. This positive economic development is also reflected in the fact that inflation expectations are rising, with the corresponding indicator for the Eurozone climbing 11.3 points to a level of 57.5 points.

For more information please contact:

Dr. Michael Schröder, Phone: +49 (0)621/1235-368, E-mail michael.schroeder@zew.de

Lea Steinrücke, Phone +49 (0)621/1235-311, E-mail lea.steinruecke@zew.de

More information and studies on the ZEW Indicator of Economic Sentiment and the release dates 2018 (as PDF file, 28 KB) and the historical time series (as Excel file, 81 KB)