German ZEW current conditions improve to -77.6, beating -77.7 forecast

Germany’s July ZEW economic sentiment index rose to 26.3 from 10.5, with confidence boosted by better sentiment in sectors affected by the war in Iran and the government’s reform package.

Summary

German investor confidence strengthened more than expected in July, with the ZEW Indicator of Economic Sentiment for Germany rising to 26.3 from 10.5 in June. The survey, which tracked the expectations of 185 analysts and investors at banks, insurance companies and other businesses, was helped by improved sentiment in industries hit by the war in Iran and by the reform package proposed by Germany’s government. The update adds a forward-looking boost to the picture after Germany’s ZEW current conditions reading previously improved to -77.6 from -81.0, though that gauge remained deeply negative and continued to signal a weak economic backdrop.

Terms & Concepts
  • ZEW Indicator of Economic Sentiment: A closely watched survey-based measure of expectations for Germany’s economy among analysts and institutional investors.
  • ZEW current conditions: A survey measure of how respondents assess Germany’s present economic environment.