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Slight Decline in Economic Sentiment

Date

24 May 2016

Sections

Development Policy
Euro & Finance

ZEW Indicator of Economic Sentiment

Slight Decline in Economic Sentiment

The ZEW Indicator of Economic Sentiment for Germany has declined slightly in May 2016. The index has decreased by 4.8 points compared to the previous month, now standing at 6.4 points (long-term average: 24.4 points). "The strong growth of the German economy in the first quarter of 2016 appears to have surprised the financial market experts. However, they seem not to expect the economic situation to improve at the same pace going forward. Uncertainties regarding developments such as a possible Brexit currently inhibit a more optimistic outlook," says Professor Achim Wambach, PhD, President of ZEW. The assessment of the current situation in Germany is improving. Growing by 5.4 points, the index now stands at 53.1 points.

Financial market experts’ sentiment concerning the economic development of the Eurozone has dropped. The Indicator of Economic Sentiment for the Eurozone has decreased by 4.7 points to a reading of 16.8 points. Gaining 2.9 points in May 2016, the indicator for the current situation in the Eurozone has reached a value of minus 9.2 points.

For more information please contact:
Dominik Rehse, Phone +49(0)621/1235-378, E-mail rehse@zew.de
Jesper Riedler, Phone +49(0)621/1235-379, E-mail riedler@zew.de

 

211 analysts participated in the May 2016 ZEW Financial Market Survey, which was conducted in the period between 05/09 – 05/23/2016. Analysts were surveyed about their mid-term expectations concerning the economic development and capital market trends in Germany and the euro area. The ZEW Indicator of Economic Sentiment reflects the balance of positive and negative assessments of the economic development on a six-month time horizon.

The Mannheim Centre for European Economic Research (ZEW)

ZEW works in the field of frontier empirical research in economics. The institute especially distinguished itself by working on internationally comparative studies in the context of Europe and by creating important scientific data bases, e.g. the Mannheim Innovation Panel (MIP) and the ZEW Start-up Panel. ZEW’s key objectives are to conduct excellent economic research, provide science-based economic policy advice and transfer knowledge. ZEW was founded in 1991. ZEW currently has a staff of approximately 190 employees, two thirds of whom are researchers.

Research at ZEW:

Labour Markets, Human Resources and Social Policy; Industrial Economics and International Management; Information and Communication Technologies; International Finance and Financial Management; Environmental and Resource Economics, Environmental Management; Corporate Taxation and Public Finance; International Distribution and Redistribution; Competition and Regulation

www.zew.de / www.zew.eu