ZEW economic expectations rise again
The economic expectations of financial experts for Germany have once again improved significantly. The index of the Centre for European Economic Research (ZEW) in Mannheim rose by 10.9 points to 9.8 points in the November survey, putting it back in positive territory for the first time since April, according to the institute. "The impression is growing that we have reached the bottom," explained ZEW President Achim Wambach.
The increased expectations are therefore accompanied by a "significantly more optimistic outlook for the German industrial sector" and the domestic and foreign stock markets. "The expectations for short and long-term interest rates also appear to have reached a turning point."
The experts' assessment of the current economic situation remains very poor at minus 79.8 points. The value remained almost unchanged compared to October. This is particularly "remarkable" against the backdrop of a worsened assessment of the situation in the eurozone as a whole, explained Wambach. Here, the index fell by 9.4 points to minus 61.8 points.
For the index, the ZEW asks experts from banks, insurance groups and finance departments of large companies for their assessments of important international financial market data that provide information on future economic developments. This includes inflation rates, interest rates, share indices, exchange rates and the oil price. The ZEW Index is regarded as an important indicator for the future economic development of Germany.
According to the ZEW, 174 analysts and institutional investors took part in the current survey from November 6 to 13.
The improvement in ZEW economic expectations also suggests that we might be approaching the 'bottom of the valley' for the German economy, as stated by ZEW President Achim Wambach. Despite this, the current economic situation in Germany, as reflected in the ZEW Index, remains unfavorable at a poor -79.8 points.
Source: www.ntv.de
