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- Germany: ZEW Indicator of Economic Sentiment rose sharply in January
Germany: ZEW Indicator of Economic Sentiment rose sharply in January
According to the report from Leibniz Centre for European Economic Research (ZEW), Indicator of Economic Sentiment for Germany has again risen sharply at the beginning of 2020. In January, the indicator stands at 26.7 points, 16.0 points higher than in the previous month. This is the indicator's highest value since July 2015. Economists had expected an increase to 15.0. The assessment of the economic situation in Germany has also improved considerably in the current survey, with the corresponding indicator climbing to a level of minus 9.5 points, 10.4 points higher than in December.
"The continued strong increase of the ZEW Indicator of Economic Sentiment is mainly due to the recent settlement of the trade dispute between the USA and China. This gives rise to the hope that the trade dispute's negative effects on the German economy will be less pronounced than previously thought. In addition, the German economy developed slightly better than expected in the previous year. Although the outlook has improved, growth is still expected to remain below average," comments ZEW President Professor Achim Wambach.
Financial market experts' sentiment concerning the economic development of the eurozone has also considerably improved once again, bringing the indicator to a current level of 25.6 points for January, 14.4 points higher than in December 2019. The indicator for the current economic situation in the eurozone also rose again by 4.8 points, climbing to a current reading of minus 9.9 points.
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