German expectations rise
The ZEW Indicator of Economic Sentiment for Germany has increased by 3.2 points in October 2013.
The indicator now stands at a level of 52.8 points (historical average: 23.9 points), its highest mark since April 2010.
“The financial market experts remain optimistic. At present a greater impact of the debate on the debt ceiling in the USA is not visible”,
says ZEW President Prof. Dr. Clemens Fuest. The assessment of the current economic situation for Germany has slightly worsened in October. The respective indicator has fallen by 0.9 points and now stands at the 29.7 points-mark.
Economic expectations for the Eurozone have marginally increased in October. The respective indicator has improved by 0.5 points to 59.1 points. The indicator for the current economic situation in the Eurozone has decreased by 1.2 points to a level of minus 60.9 points.
The Centre for European Economic Research (ZEW) is a nonprofit and independent institute founded in 1990 on the basis of a public-private initiative in the Baden-Württemberg state.
As a matter of fact, ZEW is one of Germany’s leading economic research institutes, and enjoys a strong reputation throughout Europe.
The ZEW Indicator of Economic Sentiment is ascertained monthly.
Up to 350 financial experts take part in the survey. The indicator reflects the difference between the share of analysts that are optimistic and the share of analysts that are pessimistic for the expected economic development in Germany in six months.
The survey also asks for the expectations for the Eurozone, Japan, Great Britain and the U.S.A.
More in detail, the ZEW index show quite a disenchanted view of the European status
No surprises looking at Italian outlook, while it can be considered interesting the French result.
When it comes to economic expectations, Italy seems to present the same possibility of UK and France to improve and get better.
It is really interesting to notice how the improvement expectation for every single Country is lower than the improvement expectation for the whole Europe.
This can be due to a renewed trust in the European strength or in the fact that this is indeed a ‘sentiment’ and when it comes closer the reality of each Country it looses confidence.
In reference to the industrial sectors, the ZEW index forecast an increase in the Oil market.
This parameter, usually closely linked to industrial production and economic growth, will then also help the development or Renewable Energies.Sources: http://www.zew.de