The German ZEW headline numbers for February showed that the economic sentiment index dropped to -13.4 versus -14.0 expectations and -15.0 last. While the sub-index current conditions figure plunged to 15.0 versus 23.0 expected and 27.6 booked previously, missing market expectations by a big margin.
ZEW President Professor Achim Wambach noted: “At the moment, we do not expect a rapid recovery of the slowing German economy. The economic situation in Germany has been weak, especially in the manufacturing sector. The figures for industrial production have once again seen a decrease, incoming orders are stagnant and foreign trade currently provides no fresh impulses. All of this is reflected in the fact that the assessment of the current situation has experienced a considerable decline. For the next six months, the financial market experts in our survey do not expect any improvement.”
About German ZEW
These numbers are derived via a survey of about 300 German institutional investors and analysts, conducted by the Zentrum für Europäische Wirtschaftsforschung (ZEW), which asks respondents to rate the relative 6-month economic outlook for Germany. Generally speaking, an optimistic view is considered as positive (or bullish) for the EUR, whereas a pessimistic view is considered as negative (or bearish).
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