ZEW Indicator of Economic Sentiment - Expectations Almost Unchanged

The ZEW Indicator of Economic Sentiment for Germany has climbed by 2.5 points in December 2010. The indicator now stands at 4.3 points after 1.8 points in the previous month. This value is below the indicator’s historical average of 26.8 points.

In October industrial production and incoming orders have developed favourably in Germany and have thus been strengthening economic recovery. Nevertheless, necessary budget consolidations across many countries in Europe and the prospect of a more contractionary monetary policy in China are among the risk factors for German exports.

"After a strong increase in the previous month, economic expectations for Germany seem to stabilise in December. Besides impulses from export activities, economic stimulus is also expected from domestic demand, supported by a positive labour market development and low real interest rates", says ZEW President Prof. Dr. Dr. h.c. mult. Wolfgang Franz.

The assessment of the current economic situation in Germany remains almost unchanged. In December the corresponding indicator has risen by 1.1 points to 82.6 points. Economic expectations for the eurozone have increased by 1.7 points in December. The respective indicator now stands at 15.5 points. The indicator for the current economic situation in the eurozone has worsened by 3.6 points and now stands at minus 4.6 points.

For further information please contact

Christian David Dick, Phone: +49 (0)621/1235-305, E-mail: dick@zew.de

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