Expectations Continue to Rise

Economic expectations rise further in August, and the ZEW indicator climbs by 7.9 points to plus 34.2 points. The assessment of the current economic situation is considerably more positive, with the situation indicator for Germany climbing by plus 16.5 points over the previous month to minus 61.1 points.

“The positive trend in expectations further consolidates in August, likely due to the good quarterly results and the recent high level in exports. The German economy continues to benefit from the federal government’s infrastructure programmes although the record low water levels on the Rhine River present an additional acute risk affecting economic activity,” comments ZEW President Professor Achim Wambach, PhD on the current survey results.

All industries report brighter expectations, especially the vehicle industry where prospects improve by 22.2 points although the balance is still in negative territory. The chemical and pharmaceutical industries as well as the mechanical engineering and metal industries also record strong growth. Expectations regarding private consumption continue to increase by 9.0 points to minus 6.2 points. The construction industry improves by 1.4 points to plus 2.1 points.

Expectations for the eurozone increase in August. At 31.4 points, the indicator is 8.0 points higher than in July. The assessment of the economic situation improves strongly by 16.2 points but, at minus 21.5 points, remains in negative territory.