Contrary to expectations, ZEW Indicator of Economic Sentiment rises in May

By Hans Bentzien

FRANKFURT (Dow Jones)–Contrary to expectations, the economic expectations of stock exchange and financial experts for Germany did not deteriorate further in May. The expectation index collected by the Center for European Economic Research (ZEW) rose to minus 34.3 (April: minus 41.0), as the ZEW announced. Economists surveyed by Dow Jones Newswires, on the other hand, had expected a decline to minus 44.5 points. The index for assessing the economic situation fell to minus 36.5 (minus 30.8) points. Economists had expected minus 35.0 points.

“The ZEW Indicator of Economic Sentiment increased slightly this month, but remained at a relatively low level,” explained ZEW President Achim Wambach. Compared to the previous month, the outlook for the economic situation in Germany is a little less pessimistic. In the current survey, a large majority of the experts expect the European Central Bank (ECB) to raise short-term interest rates in the next six months.

The economic expectations for the euro zone increased to minus 29.5 (43.0) points. The indicator for the current economic situation dropped to minus 35.0 (minus 28.5) points. Inflation expectations for the euro area fall to minus 10.6 (plus 25.9) points.

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DJG/hab/apo

(END) Dow Jones Newswires

May 10, 2022 05:11 ET (09:11 GMT)

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