Germany Economic Sentiment Drops

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 indicator’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.

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza
Alfonso Esparza

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