Germany: ZEW Indicator of Economic Sentiment rose sharply in March

According to the report from ZEW (Leibniz Centre for European Economic Research). Indicator of Economic Sentiment for Germany recorded a strong increase of 9.8 points in March 2019, with the corresponding indicator climbing to a level of minus 3.6 points. Although the indicator is still below the long-term average of 22.2 points, the expectations for the medium-term economic development are less pessimistic than they were a month or two ago. The assessment of the current economic situation in Germany decreased again in March, falling by 3.9 points to a reading of 11.1 points compared to the previous month.

“The significant increase in the ZEW Indicator of Economic Sentiment shows that major economic risks are considered to be less dramatic than before. The possible delay in the Brexit process as well as the renewed hope for a deal on the UK’s withdrawal from the EU seem to have given rise to more optimism among financial market experts. Progress made in the negotiations between China and the US to end the trade war between the two nations may also have contributed. Nevertheless, the ZEW Indicator of Economic Sentiment for Germany points to relatively weak growth in the first half of 2019,” comments ZEW President Professor Achim Wambach.