ZEW Indicator of Economic Sentiment - Optimism Returns

The ZEW Indicator of Economic Sentiment for Germany increased considerably in August 2009. The indicator rose by 16.6 points and now stands at 56.1 points after 39.5 points in the previous month. This value is well above the indicator’s historical average of 26.5 points.

The assessment of the current economic situation in Germany improved significantly in August as well. The corresponding indicator increased by 12.1 points to minus 77.2 points.

Positive growth figures for the Gross Domestic Product (GDP) in the second quarter 2009 have led to a better assessment of the current economic situation in Germany. A repeated rise of incoming orders and increasing exports have brightened the economic perspectives for Germany in the next months. In line with the increase of the overall economic expectations for Germany the expectations for all surveyed sectors of the German economy and for the export-oriented sectors particularly, have noticeably improved.

"The recent development of the GDP shows that the previous expectations of the financial market experts have come true. There is, however, no reason for euphoria. The German economy develops parallel to the world economy and should, hence, recover only gradually," says ZEW President Prof. Dr. Dr. h.c. mult. Wolfgang Franz.

The economic expectations for the euro zone rose in August by 15.4 points compared to the previous month. The respective indicator now stands at 54.9 points. The indicator for the current economic situation in the euro zone improved as well. It now stands at minus 82.1 points.

Contact

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

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