German economic sentiment drops slightly in June

The ZEW Indicator of German Economic Sentiment fell in June by 2 points to 18.6. Therefore, the indicator continues to be below the long-term average of 23.9 points. On the contrary, the assessment of the current economic situation in Germany rebounded again in June. The indicator rose 4.1 points to 88 points, the highest level since July 2011. In spite of a slight decline in expectations, the outlook of the German economic growth in the coming six months continue to be quite positive.

ZEW President Achim Wambach stated that the prospects for the German economy stay favourable. This is not least because of the positive GDP growth in the EU in the first quarter of 2017. Most of the financial market experts expect the current situation to stay as favourable as it is at the moment, while 23.9 percent expect it to improve in the coming six months.

The indicator showing the financial market experts expectations about the economic development in the euro area rose 2.6 points in June, bringing the expectation indicator up to a current level of 37.7 points. The expectations about the inflation rate in the euro area dropped a bit by 0.6 points to a new level of 16.4 points.