EU Economy
German economic sentiment declined in February 2014
By Finfacts Team
Feb 18, 2014 - 12:45 PM

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German economic sentiment declined in February 2014 with the ZEW Indicator of Economic Sentiment falling by 6.0 points and now stands at a level of 55.7 points (historical average: 24.5 points) - - The Centre for European Economic Research (ZEW - - Zentrum für Europäische Wirtschaftsforschung) in Mannheim is a nonprofit and independent institute. It was founded in 1990 on the basis of a public-private initiative in the federal state of Baden-Württemberg in co-operation with the University of Mannheim.

The cautious expectations in this month’s survey are likely to be caused by some uncertainties which came to the fore recently. Weak employment figures as well as some damped leading indicators have, for instance, caused concern in the US that the current economic upswing could lose momentum. Furthermore, the volatile capital markets in some emerging economies reflect uncertainties regarding their economic prospects in the medium term.

“This month’s decline in economic expectations must not be overstated. The majority of surveyed financial market experts remain optimistic,” says Prof Clemens Fuest, ZEW president. The indicator reflecting the expert’s assessment of the current economic situation for Germany has gained 8.8 points in February, reaching a level of 50.0 points, its highest mark since August 2011.

Economic expectations for the Eurozone have also declined in February. The respective indicator has lost 4.8 points and now stands at a level of 68.5 points. The indicator for the current economic situation in the Eurozone has improved by 8.0 points to a level of minus 40.2 points

Some 251 analysts participated in the February-survey which was conducted during the period 2/3-2/17/2014. Analysts were asked about their expectations for the next 6 months.

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