ZEW Indicator of Economic Sentiment - Optimism Increases

The ZEW Indicator of Economic Sentiment for Germany improved in June 2009. This is the eighth month in a row with an increase. The indicator rose by 13.7 points and now stands at 44.8 points after 31.1 points in the previous month. This value is above the indicator’s historical average of 26.3 points.

The repeated recovery of economic sentiment reveals a consolidating optimism among the financial market experts, even though the industrial production and incoming orders do not yet show a clear upward trend. The surveyed experts also show an increasing confidence in the further development of the banking sector. This can be seen as a positive signal with respect to future lending conditions by banks.

"The assessment of the experts indicates that the economic downturn dynamics are currently coming to rest. They further see tendencies for a recovery at the end of this year. This cautious optimism should not be destroyed by overly pessimistic projections." says ZEW President Prof. Dr. Dr. h.c. mult. Wolfgang Franz.

The assessment of the current economic situation in Germany improves in June for the first time since September 2008. The corresponding indicator increases slightly by 3.1 points to minus 89.7 points. This is consistent with the experts’ expectations in late 2008.

The economic expectations for the euro zone increased in June by 14.2 points compared to the previous month. The respective indicator now stands at 42.7 points. The indicator for the current economic situation in the euro zone rises in June by 2.5 points to minus 90.7 points.

Contact

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

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