Bad news from German Economic Sentiment

hello,

 

The ZEW Economic Expectations for Germany have worsened once again in June 2014. The respective indicator has 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 decrease, however, was notably less significant than the May decrease, when the indicator lost more than ten points.

 

chart 1. German ZEW Economic Sentiment; 2014-06-18

 

 

What is the ZEW (Zentrum fur Europaische Wirtschaftsforschung):

Measures: Level of a diffusion index based on surveyed German institutional investors and analysts;

 

Frequency: Released monthly, on the second or third Tuesday of the current month;

 

Notes: Above 0.0 indicates optimism, below indicates pessimism. It's a leading indicator of economic health - investors and analysts are highly informed by virtue of their job, and changes in their sentiment can be an early signal of future economic activity;

 

Derived Via: Survey of about 275 German institutional investors and analysts which asks respondents to rate the relative 6-month economic outlook for Germany;

 

 

best regards,

oscarjp