ZEW Indicator of Economic Sentiment - Further Economic Slowdown Expected

The ZEW Indicator of Economic Sentiment for Germany drops by 10.5 points in October 2014 and now stands at minus 3.6 points (long-term average: 24.5 points). Decreasing for the tenth consecutive time, the index has returned to negative territory for the first time since November of 2012.

"ZEW's financial market experts expect the economic situation in Germany to decline further over the medium term. Geopolitical tensions and the weak economic development in some parts of the Eurozone, which is falling short of previous expectations, are a source of persistent uncertainty. These factors are tarnishing growth expectations in Germany. Disappointing figures concerning incoming orders, industrial production, and foreign trade have likely contributed to the growing pessimism among financial market experts," says ZEW President Professor Clemens Fuest. The assessment of the current situation in Germany has also deteriorated significantly. The respective indicator has lost 22.2 points and now reads 3.2 points.

The ZEW Indicator of Economic Sentiment for the Eurozone decreased in October as well. The respective indicator has declined by 10.1 points compared to the previous month, reaching 4.1 points. The indicator for the current economic situation in the euro area has decreased by 13.0 points to a value of minus 56.8 points.

For further information please contact

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

Jesper Riedler, Phone +49 (0)621/1235-379, E-mail riedler@zew.de