German ZEW economic sentiment improved to -17.5 in December, up from -24.1, better than expectation of 025.0. However, current situation index dropped to 45.3, down from 58.2, missed expectation of 55.6. Eurozone ZEW economic sentiment improved slightly to -21.0, up from -22.0, and beat expectation of -23.2. Eurozone current situation dropped -6.1 to 12.1.
ZEW President Achim Wambach noted in the release that the rise in expectation “should not be over-interpreted”. He added that “the assessment of the economic situation has worsened dramatically for both Germany and the Eurozone” And, this is “indicative of relatively weak economic growth in the fourth quarter”. Also, uncertainties remain in terms of the “looming international trade dispute and Brexit, which have a particularly negative impact on private investment and Germany’s exports”.
