The ZEW Indicator of Economic Sentiment for Germany has decreased by 6.9 points in November 2011. This is the ninth decline in a row. The indicator now stands at minus 55.2 points. This value is below the indicator’s historical average of 25.0 points. A lower value of the indicator was last seen in October 2008.
Government crises in Italy and Greece have further increased the uncertainty about the economic development in the Eurozone. This might have contributed to this month’s decline of the ZEW Indicator of Economic Sentiment.
“World trade is weakening and the public debt problems in the Eurozone and in the United States weigh heavily on business activity. These risks could even gain more importance and thus could further harm economic growth in Germany," says ZEW President Prof. Dr. Dr. h.c. mult. Wolfgang Franz.
The assessment of the current economic situation in Germany is still in the positive territory, but it has once again worsened compared to the previous month. The corresponding indicator has dropped by 4.2 points to the 34.2 points-mark.
Economic expectations for the eurozone have decreased by 7.9 points in November. The respective indicator now stands at minus 59.1 points. The indicator for the current economic situation in the eurozone has dropped by 8.1 points and now stands at the minus 39.8 threshold.
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