ZEW Indicator of Economic Sentiment - Recovery Slows Down Somewhat

The ZEW Indicator of Economic Sentiment for Germany decreased by 3.2 points in January 2010. The indicator now stands at 47.2 points after 50.4 points in the previous month. This value is still well above the indicator’s historical average of 27.1 points.

The development of the indicator suggests that the surveyed financial market experts expect the German economy to recover only at a slow rate within the next six months. According to the experts, the automobile and consumption sector is likely to develop downwards in the next half year. Business expectations for the German machinery sector, in contrast, considerably improved this month.

"The assessment of the financial market experts suggests that we will see an economic recovery in 2010 at best, but not a clear economic upswing. The way out of the recession is burdensome and long", says ZEW President Prof. Dr. Dr. h.c. mult. Wolfgang Franz.

The assessment of the current economic situation in Germany improved in January. The corresponding indicator rose by 4.0 points to minus 56.6 points.

The economic expectations for the euro zone decreased in January by 1.6 points compared to the previous month. The respective indicator now stands at 46.4 points. The indicator for the current economic situation in the euro zone improved by 5.1 points and now stands at minus 62.7 points.

For further information please contact

Dr. Sandra Schmidt, E-mail: s.schmidt@zew.de

Matthias Köhler, E-mail: koehler@zew.de