Germany’s indicator of economic sentiment has shown a notable increase in March 2024, signalling a positive shift in expectations among financial market experts, according to the latest survey by ZEW. The index, which reflects the optimism or pessimism regarding Germany's economic future, climbed 11.8 points from its February value, reaching 31.7 points.

However, the assessment of Germany's current economic situation remains largely unchanged, with only a slight improvement observed. The indicator for the current economic situation inched up by 1.2 points, settling at minus 80.5 points.

The broader European economic sentiment has also seen an improvement, with the ZEW Indicator for the eurozone's economic development witnessing a substantial rise. The indicator moved up by 8.5 points to 33.5 points in March. The current situation in the eurozone appears to be deteriorating slightly, as the situation indicator fell by 1.4 points to a level of minus 54.8 points, as per ZEW.

“Economic expectations for Germany are significantly improving. At the same time, more than 80 per cent of those surveyed anticipate that the ECB will cut interest rates in the next six months. This could explain the more optimistic outlook for the German construction industry. The German export sector benefits from the increased economic expectations for China as well as the expected depreciation of the dollar against the euro. Meanwhile, the assessment of the economic situation remains at a very low level. This development somewhat diminishes the increased economic expectations,” said ZEW president Professor Achim Wambach.

Fibre2Fashion News Desk (DP)

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