ZURICH (MaceNews) – The economic outlook in Germany for the next six months unexpectedly declined in June while the assessment of current economic conditions improved markedly, the most recent report from the ZEW Institute in Mannheim showed.
ZEW’s Economic Expectations Index fell 4.6 points in June to 79.8, below the 85.3 median of an Econoday survey of economists’ forecasts.
Conversely, the assessment of the current economic situation improved 31.0 points in June to a reading of -9.1, well above the -28.0 Econoday median, bringing the assessment back to pre-pandemic levels of August 2019, ZEW said.
Even with today’s decline in the outlook, expectations remain high and are much more positive that in the summer of 2019.
“The economic recovery is progressing. Although the ZEW Indicator of Economic Sentiment has experienced a drop in June, it remains at a very high level. The decline in expectations is probably largely due to the considerably better assessment of the economic situation, which is now back at pre-crisis levels. The financial market experts therefore continue to expect a strong economic recovery for the next six months,” ZEW President Professor Achim Wambach said in a statement.
In the Eurozone, the economic outlook also declined, down 2.7 points to 81.3 while current conditions in the currency bloc improved 27.0 points to -24.4.
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