Germany’s ZEW economic sentiment recovers in August

In August, the ZEW Indicator of Economic Sentiment for Germany recovers in August. According to the ZEW Center for European Economic Research, the index rose by 7.3 points from July to 0.5 points in August. Consensus expectation was for a rise to 1.8. The long-term average is 24.2 points. The current situation’s assessment in Germany is rebounding. The current situation index rose 7.8 points in August to 57.6 points.

ZEW President Achim Wambach said the economic sentiment indicator has partially recovered from the shock of Brexit. But he added that political risks within and outside the EU “continue to inhibit a more optimistic economic outlook for Germany”. Moreover, uncertainty continues surrounding the resilience of the EU banking sector.

Meanwhile, the financial market experts’ sentiment concerning the economic development of the euro area has risen significantly. The ZEW Indicator or Economic Sentiment for the Eurozone rose 19.3 points to 4.6 points in August. The current economic situation index for the euro area improved in August, rising by 2.1 points to minus 10.3 points.