ZEW Indicator of Economic Sentiment - Expectations on the Upswing

The ZEW Indicator of Economic Sentiment for Germany increased in February 2009 once again. The indicator rose by 25.2 points and now stands at minus 5.8 points after minus 31.0 points in the previous month. This is still well below its historical average of 26.4 points.

For the fourth time in a row, the experts are more optimistic regarding the development of the German economy on a six months time horizon. This might be explained by the fiscal and monetary policy measures launched by the German government and the ECB to stimulate the economy. Moreover, declining prices for raw materials and food should back private consumption.

"Currently, the German economy is still on a downward move. However, the experts expect this movement to reach its lowest point within the next months. By the mid of 2009, the economy is likely to improve again. A sign of hope – no more, no less", says ZEW President Prof. Dr. Dr. h.c. mult. Wolfgang Franz.

The assessment of the current economic situation in Germany worsened again in February. The corresponding indicator dropped by 9.1 points to minus 86.2 points. Economic expectations for the euro zone increased in February by 22.1 points. The respective indicator now stands at minus 8.7 points. The indicator for the current economic situation in the euro zone decreased by 6.3 points to minus 91.0 points.

For further information please contact

Dr. Sandra Schmidt, E-mail: s.schmidt@zew.de

Matthias Köhler, E-mail: koehler@zew.de