German ZEW economic sentiment index unchanged in September, economic situation to remain favorable

The economic sentiment of Germany remained unchanged in September, close to the lowest level in nearly four years. The ZEW Centre of Economic Research stated that the economic sentiment index stayed at 0.5 in September, as compared with projections of a rise to 2.5.

The current situation index dropped a tad in September, falling by 2.5 points to 55.1 points. According to ZEW-President Professor Achim Wambach, the present ambiguity of economic impulses from Germany and abroad signifies that projections for the next few months are difficult. Exports from Germany, especially to non-EU nations, as well as industrial production data have disappointed. On the contrary, economic environment in the EU is improving.

“Overall, the ZEW Indicator of Economic Sentiment suggests that the economic situation in Germany will remain favourable in the coming six months", added Wambach.

Meanwhile, the financial market experts’ sentiment regarding the euro area’s economic development has improved marginally. ZEW’s Indicator of Economic Sentiment for the euro area has risen by 0.8 points to 5.4 points. In the meantime, the current situation indicator has continued to remain unchanged at -10.5 points.