ZEW Indicator of Economic Sentiment: Expectations Brighten Up

The ZEW Indicator of Economic Sentiment for Germany has climbed by 11.1 points in January 2011. The indicator now stands at 15.4 points after 4.3 points in the previous month. This value is below the indicator’s historical average of 26.8 points.

Apparently the financial market experts expect the dynamic growth of the German economy to continue. This assessment might be due to the fact that investment is gaining momentum in Germany as well as abroad. This development is backed by current data on incoming orders in the German industry gathered by the German Federal Statistical Office. Moreover, surprisingly positive data from the US economy released at the end of 2010 raise hope that the robust worldwide economic growth will continue.

"The currently low level of real interest rates should strengthen demand for capital equipment in Germany. Increased job security stimulates private consumption", says ZEW President Prof. Dr. Dr. h.c. mult. Wolfgang Franz.

The assessment of the current economic situation in Germany remains almost unchanged. In January the corresponding indicator has risen by 0.2 points to 82.8 points. Economic expectations for the eurozone have increased by 9.9 points in January. The respective indicator now stands at 25.4 points. The indicator for the current economic situation in the eurozone has worsened by 1.5 points and now stands at minus 6.1 points.

For further information please contact

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

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