ZEW Economic Sentiment Remains at a Low Level

The ZEW Indicator of Economic Sentiment for Germany decreased slightly in July 2019. Expectations are now at minus 24.5 points. This corresponds to a drop of 3.4 points compared to the previous month. The indicator’s long-term average is 21.8 points. In July, the assessment of the economic situation in Germany worsened by 8.9 points, with the corresponding indicator falling to a current reading of minus 1.1 points.

“In particular the continued negative trend in incoming orders in the German industry is likely to have reinforced the financial market experts’ pessimistic sentiment. A lasting containment of the factors that are causing uncertainty in the export-oriented sectors of the German economy is currently not in sight. The Iran conflict seems to be intensifying and the ongoing trade dispute between the USA and China is a burden not only to Chinese economic development. Furthermore, no discernible progress has been made in the negotiations as to what Brexit will look like,” comments ZEW President Professor Achim Wambach.

The financial market experts’ sentiment concerning the economic development of the eurozone has slightly decreased, with the corresponding indicator falling 0.1 points to a current level of minus 20.3 points. The indicator for the current economic situation in the eurozone fell 6.9 points to a level of minus 10.6 points in July.

ZEW.de

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Dean Popplewell

Dean Popplewell

Vice-President of Market Analysis at MarketPulse
Dean Popplewell has nearly two decades of experience trading currencies and fixed income instruments. He has a deep understanding of market fundamentals and the impact of global events on capital markets. He is respected among professional traders for his skilled analysis and career history as global head of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2006, Dean has played an instrumental role in driving awareness of the forex market as an emerging asset class for retail investors, as well as providing expert counsel to a number of internal teams on how to best serve clients and industry stakeholders.
Dean Popplewell