ZURICH (MaceNews) – The economic outlook for Germany improved again in September as both economic sentiment and current conditions rose more than analysts had expected, even in the face of rising COVID-19 cases.
The ZEW Indicator which measures the outlook for economic sentiment over six months improved 5.9 points in September to 77.4. This was well above the consensus forecast from Econoday which was for a decline to 69.8 from 71.5 in August.
The assessment of current conditions also improved to -66.2, gaining 15.1 points over August, and beating the Econoday forecast -72.0. “The ZEW Indicator of Economic Sentiment has increased again, signaling that the experts continue to expect a noticeable recovery of the German economy. Stalled Brexit talks and rising COVID-19 cases could not dampen the positive mood. However, the still negative outlook for the banking sector reveals fears of a rising number of loan defaults in the coming six months,” ZEW President Professor Achim Wambach said in a statement.
ZEW also measures sentiment for the countries sharing the euro and the dynamic was the same as for Germany, with Eurozone economic sentiment improving to 73.9, up 9.9. Current conditions improved to -80.9, gaining 8.9 points.
Germany’s Ifo Institute will release its measure of economic sentiment on September 24 and investors will be looking for that to confirm the ZEW readings.
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