ZEW Indicator of Economic Sentiment: Stock Markets Support Optimism

The ZEW Indicator of Economic Sentiment for Germany increased slightly by +0.3 points in May and now stands at +18.7 points versus +18.4 points in the previous month.

The sentiment of the surveyed analysts reflects the improved situation on financial markets. The German stock market index Dax has risen by 34 percent since mid-March and thus indicates confidence for the future course of the German economy. In absolute terms, however, the ZEW Indicator is still below its historical average of about +33 points. "This month's performance of the indicator leads us to acquire a new modesty: One is excited that the indicator has not decreased as other indicators have. Financial market participants now have slightly more confidence in the future - nevertheless, there is no reason for excessive optimism", comments ZEW president Prof. Dr. Wolfgang Franz.

Expectations for the eurozone economy rose stronger than the German indicator. The index stands at +35.5 points which corresponds to an increase of +6.0 points.

Contact

Dr. Felix Hüfner, E-mail: huefner@zew.de

Volker Kleff, E-mail: kleff@zew.de

David Lahl, E-mail: lahl@zew.de