ZEW Indicator of Economic Sentiment - Optimism Rises Considerably

The ZEW Indicator of Economic Sentiment for Germany has increased by 27.0 points to a level of 5.4 points in February 2012. The indicator reaches thus positive territory for the first time since May 2011. A higher value was last seen in April 2011.

The further increase of economic sentiment indicates that the recent slowdown in economic growth isn't likely to last in the view of the surveyed financial market experts. Positive economic data from the United States nourish hope for a more stable global business climate. Moreover, the progress in the negotiations of the Greek government with its creditors may have reduced economic uncertainty in the eurozone.

"From the perspective of the financial market experts there is a good chance that the German economy will experience a slight uplift in the second half of 2012. Since consumers do not have to fear for their jobs due to the low unemployment rate, domestic demand will continue to support economic growth. Still, the solution of the crisis in the eurozone remains an important task," says ZEW President Prof. Dr. Dr. h.c. mult. Wolfgang Franz.

The assessment of the current economic situation for Germany has improved once again compared to the previous month. In February, the corresponding indicator has increased by 11.9 points to the 40.3 points-mark. Economic expectations for the eurozone have increased by 24.4 points in February. The respective indicator now stands at minus 8.1 points. The indicator for the current economic situation in the eurozone has increased by 2.7 points and now stands at minus 49.1 points.

For further information please contact

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

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