ZEW Indicator of Economic Sentiment: Scepticism on the Rise


The ZEW Indicator of Economic Sentiment for Germany declines in May. With +66.3 points the index now stands -4.3 points below the value of the previous month (+70.6 points).

The indicator still stands significantly above the historic mean of +33 points. However, the decline signals that uncertainty among participants regarding the sustainability of the expected economic upswing within the coming six months is increasing.

In May 327 analysts and institutional investors participated in the ZEW Financial Markets Survey which is conducted monthly by the Centre for European Economic Research (ZEW), Mannheim. The participants were asked about their medium-term expectations concerning economic activity and capital markets. The ZEW Indicator of Economic Sentiment is the balance between positive and negative expectations of the future economic development in Germany within a timeframe of six months.

The assessment of the current economic situation has deteriorated in May after it had increased in the previous months. The difference between the positive and negative assessments has declined by -4.0 points and is now standing at -80.7 points.


Dr. Felix Hüfner, E-mail: huefner@zew.de

Volker Kleff, E-mail: kleff@zew.de