German ZEW economic sentiment index falls slightly in December, economic growth momentum to be strong

The ZEW Indicator of Economic Sentiment for Germany recorded a drop of 1.3 points in December 2017 to 17.4 points. Thus, the indicator continues to be below the long-term average of 23.7 points. Meanwhile, the current conditions index rose to a new high of 89.3 points, rising 0.5 points.

Given that most economic surveys have indicated a strengthening of economic growth momentum in November, today’s ZEW survey for December implied that investors continued to be positive about current economic conditions heading towards year-end. Indeed, the ZEW index of investors’ assessment of current euro area economic conditions rose for the third straight month to the highest since the end of 2007, while the equivalent index of current German conditions rose to a new series high.

Even if the expectations indices came in slightly weaker, it is not much worrying. The upcoming German Ifo survey is expected to hint at a robust business sentiment and strong economic growth momentum as 2018 approaches, stated Daiwa Capital Market Research.

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