ZEW Indicator of Economic Sentiment - Economic Expectations Weaken Once Again

The ZEW Indicator of Economic Sentiment for Germany has decreased by 5.0 points in October 2011. This is the eighth decline in a row. The indicator now stands at minus 48.3 points. This value is below the indicator’s historical average of 25.3 points. A lower value of the indicator was seen last in November 2008.

Weak data concerning Germany’s domestic economic activity have contributed to the indicator’s decline. Due to the decrease of retail sales and industrial new orders the financial market experts may see their fears come true that the current government debt crisis might cause German companies and consumers to postpone investments and consumption spending.

In October the assessment of the current economic situation in Germany has lost ground for the third consecutive time. The corresponding indicator has dropped by 5.2 points to the 38.4  points-mark. Economic expectations for the eurozone have decreased by 6.6 points in October. The respective indicator now stands at minus 51.2 points. The indicator for the current economic situation in the eurozone has dropped by 3.8 points and now stands at the minus 31.7 threshold.

For further information please contact

Dr. Christian D. Dick, E-mail dick@zew.de

Frieder Mokinski, Phone +49 621/1235-143, E-mail mokinski@zew.de