German business sentiment index rises sharply in February

According to the report from ZEW, the indicator of economic sentiment for Germany increased again considerably in February, climbing 9.4 points to a new reading of 71.2 points compared to January. The assessment of the economic situation in Germany worsened slightly, and currently stands at minus 67.2 points, 0.8 points lower than in January. The assessment of the situation has thus remained practically unchanged at the same low level over the past six months.

“The financial market experts are optimistic about the future. They are confident that the German economy will be back on the growth track within the next six months. Consumption and retail trade in particular are expected to recover significantly, accompanied by higher inflation expectations,” comments ZEW President Professor Achim Wambach.

The financial market experts’ sentiment concerning the economic development of the eurozone also increased sharply, bringing the indicator to a current level of 69.6 points, 11.3 points higher than in the previous month. The indicator for the current economic situation in the eurozone climbed 4.3 points to a level of minus 74.6 points, which is only slightly higher than in October 2020.