German ZEW economic sentiment indicator rises further in May

The ZEW Indicator of Economic Sentiment for Germany continued to rise in May of this year. The indicator rose 1.1 points from April to 20.6 points. However, the long-term average of 23.9 points has not been reached yet.

The current economic situation index also rebounded in May, with the index rising 3.8 points to 83.9 points. Taken together, the assessment of the current situation and the economic sentiment indicate an upbeat outlook for the German economic growth in the coming six months.

“The latest figures on the gross domestic product confirm that the German economy is in good shape. ZEW indicators have been pointing to this trend for some time. The prospects for the eurozone as a whole are gradually improving, further strengthening the economic environment for German exports," said ZEW President Professor Achim Wambach.

The indicator showing the financial market experts’ expectations about the economic development in the euro area rose considerably by 8.8 points in May, bringing the expectation indicator to the current level of 35.1 points.

Meanwhile, the euro area’s indicator for the current economic situation also rose considerably. The index rose 6.8 points to 18.3 in May. The expectations for the inflation rate have also been rising in line with the improved economic outlook for the currency bloc.