Economic Expectations Remain Positive

Economic expectations in September remain stable. The ZEW indicator rises slightly by 0.5 points to currently plus 34.7 points. Assessment of the current economic situation again improves significantly. The situation indicator for Germany is at minus 47.1 points, which is equivalent to an increase of 14.0 points from the previous month.

“The ZEW indicator of economic sentiment remains stable. Experts are cautiously optimistic about a recovery of the economy. The growth continues to be driven by fiscal measures and is further bolstered by export momentum. Nevertheless, the risks are considerable: Persistent high energy prices resulting from a continued war in Iran and the additional uncertainty caused by hybrid attacks place a burden on the economy,” comments ZEW President Professor Achim Wambach, PhD on the current survey results.

The month of September presents an overall stable, albeit heterogeneous, picture across industries. The insurance industry clearly benefits from the higher interest rates and records an increase in the balance by 12.1 points to 46.4 points. In contrast, steel and metal manufacturing as well as the automotive industry remain in negative territory, with minus 16.7 and minus 22.6 points respectively. Noteworthy is the improvement in the banking industry, which climbs by 8.2 points compared to August and is now at 52.9 points.

A decline is observed, however, in the expectations for the eurozone. At plus 25.8 points, the balance is minus 5.6 points below the previous month’s reading. The assessment of the economic situation increases by 7.6 points to minus 13.9 points.