German economic sentiment indicator rose more than expected in January - ZEW

According to the report from ZEW, the Indicator of Economic Sentiment for Germany increased in the current January 2021 survey, climbing 6.8 points to a new reading of 61.8 points. The assessment of the economic situation in Germany increased somewhat, and currently stands at minus 66.4 points, 0.1 points higher than in December 2020. “Despite the uncertainty about the further course of the lockdown, the economic outlook for the German economy has improved slightly. The results of the ZEW Financial Market Survey in January show that export expectations in particular have risen significantly,” comments ZEW President Professor Achim Wambach on the current expectations.

The financial market experts’ sentiment concerning the economic development of the eurozone increased by 3.9 points, bringing the indicator to a new level of 58.3 points in January. In contrast, the indicator for the current economic situation in the eurozone dropped by 3.2 points and now stands at minus 78.9 points.

Inflation expectations are experiencing a strong increase. For the eurozone, expectations have risen by 10.9 points to a new indicator value of 51.6 points. The inflation indicator for Germany is at 58.2 points in January, 18.6 points higher than in December 2020.