The ZEW Indicator of Economic Sentiment for Germany has dropped by 5.9 points in August 2012. It now stands at a level of minus 25.5 points. This is the lowest value of the indicator in 2012 so far. Nevertheless, the indicator is well above the negative balance it reached during the financial crisis. In 2008 economic expectations temporarily dropped below the minus 60 points-mark.
The indicatorâ€™s decline in August signals that financial market experts still expect the German economy to cool down throughout the next six months. Especially export-oriented sectors may be affected.
The assessment of the current economic situation for Germany has declined slightly compared to the previous month. The respective indicator has dropped by 2.9 points in August. It now stands at the 18.2 points-mark.
Economic expectations for the Eurozone have hardly changed in August. The corresponding indicator has risen by 1.1 points to minus 21.2 points. The indicator for the current economic situation in the Eurozone has deteriorated slightly by 2.2 points to minus 75.1 points.
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