EU Economy
German economic sentiment fell for seventh straight time in July 2014
By Michael Hennigan, Finfacts founder and editor
Jul 15, 2014 - 4:54 PM

The ZEW indicator of German economic sentiment fell once more in July 2014. The indicator has lost 2.7 points and now stands at 27.1 points (long-term average: 24.7 points). The indicator has declined for the seventh straight time -  - 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.

"Germany has experienced a slight dent in economic activity recently – retail sales declined and industrial production as well as incoming orders dropped. The current decrease of the ZEW Indicator of Economic Sentiment reflects this sobering development. On a general note, however, the medium-term economic outlook remains favourable,” said Prof Clemens Fuest, ZEW president.

The assessment of Germany’s current economic situation declined by 5.9 points to 61.8 points in this month’s survey. The ZEW Indicator of Economic Sentiment for the Eurozone also fallen in July 2014. The indicator has lost 10.3 points compared to the previous month, now standing at 48.1 points. The indicator for the current economic situation in the euro area has declined by 3.8 points to minus 31.5 points.

Some 238 analysts participated in the July-survey which was conducted during the period 6/30-7/14/2014. Analysts were asked about their expectations for the next 6 months.