ZEW Indicator of Economic Sentiment - Expectations Considerably Weaker

The ZEW Indicator of Economic Sentiment for Germany has dropped by 12.1 points in June 2011. The indicator now stands at minus 9.0 points. This value is below the indicator’s historical average of 26.3 points.

To the decline of the indicator may have contributed that the Greek refinancing requirements have directed once again the attention of the financial markets to the debt crisis in some countries of the euro zone. Furthermore, unfavourable economic data from the US seem to have a negative impact on the assessment of the financial market experts with respect to the current situation and the perspectives of the economy of the United States.

"Troubles in the euro zone as well as the feared economic downturn in the US seem to weigh heavily on the mind of the financial market experts. Moreover, financial market experts see more and more evidence that the boom of the German economy may weaken during the months to come," says ZEW President Prof. Dr. Dr. h.c. mult. Wolfgang Franz.

The assessment of the current economic situation in Germany has deteriorated in June. The corresponding indicator has dropped from its all-time high by 3.9 points to 87.6 points. Economic expectations for the eurozone have decreased by 19.5 points in June. The respective indicator now stands at minus 5.9 points. The indicator for the current economic situation in the eurozone has dropped by 9.8 points and now stands at 3.8 points.

For further information please contact

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

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