German economic sentiment improves; outlook dips to -71.3: ZEW

A similarly negative assessment of the German economic situation was last seen in October 2022. The financial market experts’ sentiment concerning the economic development of the eurozone improved significantly in August and currently stands at -5.5 points, 6.7 points above the previous month’s value, ZEW said in a media release.

The situation indicator for the eurozone increased, climbing 2.4 points to a new reading of -42.0 points.

“The ZEW Indicator of Economic Sentiment remains in negative territory, though it shows a slight improvement compared to the previous month. Financial market experts thus anticipate a slight uptick in the economic situation by year-end. However, these heightened expectations need to be viewed in the context of a significantly worsened assessment of the current economic situation in Germany. It’s worth noting that the respondents, by and large, do not anticipate any further interest rate hikes in the eurozone and the US, and the economic outlook for the US has seen a significant increase—these factors contribute to the improved expectations for Germany,” commented ZEW president professor Achim Wambach on the survey results.

ALCHEMPro News Desk (NB)