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The ZEW Indicator of Economic Sentiment for Germany continued to increase in May 2017. Compared to the previous month, it climbed by 1.1 points to a current reading of 20.6 points. The long-term average of 23.9 points has not quite been reached yet. The assessment of the current economic situation in Germany also improved once again in May. The indicator climbed by 3.8 points to 83.9 points. Taken together, the assessment of the current situation and the economic sentiment show a positive outlook for the German economic growth in the coming six months. “The latest figures on the gross domestic product confirm that the German economy is in good shape. ZEW indicators have been pointing to this trend for some time. The prospects for the eurozone as a whole are gradually improving, further strengthening the economic environment for German exports,“ comments ZEW President Professor Achim Wambach.

ZEW Indicator of Economic Sentiment for Germany, May 2017

The indicator reflecting the financial market experts' expectations regarding the economic development in the eurozone increased significantly by 8.8 points in May, bringing the expectation indicator up to a current level of 35.1 points. At the same time, the indicator for the current economic situation in the eurozone also climbed significantly. It currently stands at 18.3 points, 6.8 points higher than in April. In line with the improved economic outlook for the eurozone, expectations for the inflation rate have also been rising. The corresponding indicator for the eurozone climbed 4.1 points to a reading of 17.0 points in May.