The Zentrum für Europäische Wirtschaftsforschung (ZEW) today released its September 2024 survey of economic expectations for Germany, revealing a stabilization in sentiment. The indicator registered at 37.3 points, a 2.6-point increase from the previous month.
ZEW President Achim Wambach characterized the findings as reflecting “cautious optimism” amongst financial market experts. While expectations have stabilized, the assessment of the current economic situation has continued to deteriorate. He highlighted persistent risks, specifically referencing ongoing uncertainty surrounding US trade policy and the upcoming period of intensive reforms in Germany.
The survey indicated a further decline in the perception of Germany’s current economic conditions. The current conditions indicator now stands at -76.4 points, a 7.8-point decrease from August.
A positive trend was observed in the outlook for export-oriented sectors, which had previously experienced a significant downturn. The automotive, chemical and pharmaceutical industries, as well as metal production, registered improvements. However, all three sectors remain in negative territory, indicating continued challenges.
The Eurozone economic expectation indicator also showed a slight improvement, climbing to 26.1 points – a 1.0-point increase. In contrast to the German indicator, the assessment of the Eurozone’s current economic situation witnessed a modest rise, currently standing at -28.8 points, a 2.4-point gain from the prior month.
