Germany ZEW Economic Sentiment rose further to 63.4 in June, up from 51.0, beat expectation of 60.0. That’s the third consecutive month of increase. Current Situation improved slightly to -83.1, up from 83.5, above expectation of -84.8. Eurozone ZEW economic sentiment rose to 58.6, up from 46.0, beat expectation of 53.4. Eurozone Current Situation rose 5.4 pts to -89.6.
“There is growing confidence that the economy will bottom out by summer 2020. This is reflected in the renewed rise of the ZEW Indicator of Economic Sentiment as well as the more optimistic assessment of the current situation. The expected earnings for the individual sectors in Germany still vary greatly. Earnings expectations are strongly negative for export-oriented sectors such as automotive and mechanical engineering, as well as the financial sector. In contrast, forecasts are fairly positive for information technologies, telecommunications and consumer-oriented services. The financial market experts continue to expect only a slow increase in economic value added in the third and fourth quarters,” comments ZEW President Achim Wambach.
