ZURICH (MaceNews) – The outlook for Germany’s economy improved in August after a modest decline the previous month, surpassing expectations for a slight decline from the previous month, while the assessment of the current situation was slightly worse.
The ZEW indicator of economic sentiment for Germany rose to 71.5, an improvement of 12.2 points from the previous month, and well above the consensus of 58 in an Econoday survey. Tuesday’s result is the highest reading since 72.9 in January 2004.
At the same time, the view of the current situation deteriorated slightly, down 0.4 points and reading remaining deeply negative at -81.3 while marking the fourteenth consecutive month of negative readings. Expectations were for an improvement to -70, according to Econoday.
“Hopes for a speedy economic recovery have continued to grow, but the assessment of the situation is improving only slowly,” ZEW President Professor Achim Wambach observed on the current expectations.
“According to the assessments of the individual sectors, experts expect to see a general recovery, especially in the domestic sectors. However, the still very poor earnings expectations for the banking sector and insurers regarding the coming six months give cause for concern,” Wambach said.
Investors will be looking for confirmation for an improved economic outlook when the Ifo Institute releases its report on August 25 at 10:00 am CET.