ZEW Indicator of Economic Sentiment - Positive trend continues

The ZEW Indicator of Economic Sentiment for Germany continued to improve in April 2009. It rose by 16.5 points and now stands at 13.0 points after minus 3.5 points in the previous month. For the first time since July 2007, the indicator realises a positive value, albeit it is still below its historical average of 26.1 points.

The sentiment indicator is positively affected by the government stimulus packages, which are increasingly effective. Furthermore, low inflation rates support private consumption. According to the financial market experts, the economic outlook for the United States has improved, too. In addition, there are some slightly positive impulses from other countries such as China.

"Along with other indicators, the ZEW sentiment indicator reveals that there are well-founded expectations that the downward dynamics of the business cycle are bottoming out. It is even becoming more likely that the economy will slowly recover in the second half of this year", says ZEW President Prof. Dr. Dr. h.c. mult. Wolfgang Franz.

The assessment of the current economic situation in Germany stabilised in April. The corresponding indicator dropped only slightly by 2.2 points to minus 91.6 points.

The economic expectations for the euro zone increased in April by 18.3 points compared to the previous month. The respective indicator now stands at 11.8 points. The indicator for the current economic situation in the euro zone dropped by 2.3 points to minus 93.0 points.

For further information please contact

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

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