ZEW index drops in May
Driven by lower GDP growth figures and recent volatility on both stocks and bond markets, the ZEW index on the economic outlook in Germany has declined by -11.4bsp compared to the previous month.
The index, which is based on a survey among 225 investors and analysts in Germany, also showed a deterioration of growth forecasts for the eurozone, where the outlook declined by -3.6 bsp compared to the previous month, it is now at 61.2bsp.
German GDP growth slowed to 0.3% in the first quarter of 2015, compared to 0.7% the previous quarter.
“We believe that unexpectedly low economic growth figures for the first quarter of 2015 as well as the volatility on stock and bonds markets are key drivers of this reversal. Nevertheless, there are still only a small number of respondents who anticipate an actual deterioration of the economic climate” comments ZEW president Clemens Fuest.