German investor sentiment dipped to an 18-month
low in June as the ZEW Economic Expectations for Germany lost 3.3 points. Now
standing at 29.8 points (long-term average: 24.7 points), the indicator has
decreased for the sixth time in a row. The recent fall, however, was notably
less significant than the May dip, when the indicator lost more than ten points.
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 German economy is currently in a very good shape, but further increases are
becoming more difficult. We had a strong first quarter in 2014 due to favourable
weather conditions, but signs are that the second quarter will be weaker. This
trend is also reflected in the slight decrease of the ZEW Economic
Expectations," said Professor Clemens Fuest, ZEW president .
The expectations of ZEW financial market experts have become slightly more
optimistic after the ECB’s announcement of a set of new measures. This suggests
that the ECB policy had a positive impact on the ZEW Economic Expectations.
The assessment of the current economic situation in Germany has increased in
June 2014 by 5.6 points to 67.7 points. Expectations for the Eurozone have
increased in June. The Eurozone indicator has gained 3.2 points compared to the
previous month, now standing at 58.4 points. The indicator for the current
economic situation in the euro area has decreased in June by 2.1 points to a
value of minus 27.7 points.
234 analysts participated in the June-survey
which was conducted during the period 6/2-6/16/2014. Analysts were asked about
their expectations for the next 6 months.