The ZEW Indicator of Economic Sentiment for Germany has decreased by 27.7 points to a level of minus 16.9 points in June 2012. This is the indicator's strongest decline since October 1998. The worsening of the situation in the Spanish banking sector and the insecurity about the outcome of the Greek general election, which had been lasting for most of the survey period, have likely contributed to the sharp decline of the indicator.
"The financial market experts’ expectations are a strong warning against a too optimistic assessment of Germany’s economic perspectives in the remainder of this year. The
risks of a pronounced decline in economic activity in countries with close trade ties to Germany are very clear. In addition, there is a situation in the Eurozone which continues to be precarious. The outcome of the Greek vote is a short breathing space – just that, nothing more and nothing less ," says ZEW President Prof. Dr. Dr. h.c. mult. Wolfgang Franz.
The assessment of the current economic situation for Germany has worsened. The corresponding indicator has decreased in June by 10.9 points to the 33.2 points-mark.
Economic expectations for the Eurozone have deteriorated by 17.7 points in June. The respective indicator now stands at minus 20.1 points. The indicator for the current economic situation in the Eurozone has decreased by 13.0 points and now stands at minus 73.2 points.
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