Germany ZEW Economic Sentiment dropped to 29.9 in December, down from 31.7, but beat expectation of 25.3. Current Situation index dropped sharply to -7.4, down from 12.5. That’s the first negative reading since June. Inflation Expectations dropped -19.0 pts to -33.3. 56.6% of experts expected inflation rate to decline in the next six months.
Eurozone ZEW Economic Sentiment rose from 25.9 to 26.8, above expectation of 23.5. Current Situation indicator dropped -13.9 pts to -2.3.
“The German economy is suffering noticeably from the latest developments in the COVID-19 pandemic. Persisting supply bottlenecks are weighing on production and retail trade. The decline in economic expectations shows that hopes for much stronger growth in the next six months are fading. Especially the earnings expectations of export-oriented and consumer-related industries are assessed more negatively,” comments ZEW President Professor Achim Wambach on current expectations.
