ZEW Indicator of Economic Sentiment - Economic Expectations Decrease Again

The ZEW Economic Expectations for Germany worsened once again in June 2014. The respective indicator has lost 3.3 points. Now standing at 29.8 points (long-term average: 24.7 points), the indicator has decreased for the sixth time in a row. The recent decrease, however, was notably less significant than the May decrease, when the indicator lost more than ten points.

"The German economy is currently in a very good shape, but further increases are becoming more difficult. We had a strong first quarter in 2014 due to favourable weather conditions, but signs are that the second quarter will be weaker. This trend is also reflected in the slight decrease of the ZEW Economic Expectations", says ZEW President Professor Clemens Fuest.

The expectations of ZEW financial market experts have become slightly more optimistic after the ECB’s announcement of a set of new measures. This suggests that the ECB policy had a positive impact on the ZEW Economic Expectations.

The assessment of the current economic situation in Germany has increased in June 2014 by 5.6 points to 67.7 points. Expectations for the Eurozone have increased in June. The Eurozone indicator has gained 3.2 points compared to the previous month, now standing at 58.4 points. The indicator for the current economic situation in the euro area has decreased in June by 2.1 points to a value of minus 27.7 points.

For further information please contact

Frieder Mokinski, Phone +49 (0)621/1235-143, e-mail mokinski@zew.de   

Jesper Riedler, Phone +49 (0)621/1235-379, e-mail riedler@zew.de