The assessment of the economic situation in Germany has also decreased. The corresponding indicator lost 2.3 points and now stands at a new value of -34.8 points, ZEW said in a press release.
In May 2023, Germany’s ZEW economic sentiment indicator dropped to -10.7 points, marking its first negative reading since December 2022.
Germany’s economic situation assessment stood at -34.8 points; eurozone’s economic sentiment development also deteriorated at -9.4 points.
ZEW’s president attributed the decline to expectations of ECB interest rate hikes.
The financial market experts’ sentiment concerning the economic development of the eurozone also worsened considerably in May and currently stands at -9.4 points, 15.8 points below the previous month’s value. The situation indicator for the eurozone improved, rising 2.7 points to a new reading of -27.5 points.
“The ZEW Indicator of Economic Sentiment has once again fallen sharply. The financial market experts anticipate a worsening of the already unfavourable economic situation in the next six months. As a result, the German economy could slip into a recession, albeit a mild one. The sentiment indicator decline is partly due to expectations of further interest rate hikes by the European Central Bank (ECB). Additionally, the potential default by the US in the coming weeks adds uncertainty to global economic prospects,” commented ZEW president professor Achim Wambach on the survey results.
Fibre2Fashion News Desk (NB)
