German Economic Sentiment Falls Less Than Forecast
20 Februar 2018 - 8:19AM
RTTF2
Germany's economic confidence declined less-than-expected in
January, survey results from the Mannheim-based think tank ZEW
showed Tuesday.
The ZEW Indicator of Economic Sentiment dropped to 17.8 points
in February from 20.4 in January. Though the score was above the
expected level of 16.0, it was below the long-term average of
23.7.
The current conditions index fell to 92.3 from 95.2 in the
previous month, but it was the second highest reading on record.
The score was forecast to fall moderately to 94.
February's small fall in German investor sentiment was
unsurprising against a backdrop of falling equity prices and a
strong euro, Jennifer McKeown, an economist at Capital Economics,
noted.
The fact that the majority of investors expect economic
conditions to improve regardless is testament to the positive
outlook for the broader economy, the economist said.
"The latest survey results continue to show a positive outlook
for the German economy," ZEW President Achim Wambach said. The
assessment of the current economic situation is still on a very
high level and the economy is expected to improve in the coming six
months, he added.
Wambach noted that economic growth in Germany is substantially
driven by global economy and private consumption. Inflation
expectations for Germany and the Eurozone have also started to
increase, he said.
About two thirds of the survey participants expect the inflation
rate in Germany and the entire euro area to increase in the next
six months.
The economic sentiment index for the euro area dropped 2.5
points to 29.3 in February. Meanwhile, the current conditions
indicator rose 1.3 points to 57.7.
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