Weak Euro and low oil price boost German economic sentiment
The monthly ZEW index on economic sentiment in Germany gained 23.4 points month on month, reflecting a significant improvement for the eurozone’s largest economy.
Increasing for the second month, the index for economic sentiment in Germany now stands ar 34.9 points, while the assessment of the current situation in Germany grew by 6.7 points, the index now stands at 10.0 points.
“Confidence in the German economy seems to be slowly returning among the financial market experts surveyed by ZEW. This increase is related to favourable economic conditions such as the weak euro and the low crude oil price. The recently published German export figures already show a positive trend,” says ZEW president Clemens Fuest.
However, he also cautioned that the factors driving the recent improvement, such as low oil prices, may potentially very short term.
Meanwhile, the sentiment indicator for the eurozone increased by 20.8 points to a reading of 31.8 points. The indicator for the current situation in the euro area decreased in December by 3.1 points to minus 62.8 points.
The December index is based on a survey among 230 analysts in Germany.