Negative economic outlook

Article by Philipp Matzku, translated by Susanne Höfler | 18.09.2019 - 11:07

The positive mood in the construction sector continues in September. The current reading for those who expect business to "improve" is 34.4 points, the value for "remain stable" slightly increased by 4.3 points to 58.1 points, "deteriorate" remains unchanged at 7.5 points.

The expectations indicator in September roughly corresponds to the value from June (-21.1 points). The economic outlook value is still significantly below its long-term average value (21.5 points).

The indicator for the current situation is at -19.9 points (-6.4 points) which is the lowest value since May 2010. "The rise of the ZEW Indicator of Economic Sentiment is by no means an all-clear concerning the development of the German economy in the next six months", Achim Wambach, ZEW President, comments. The intensification of the trade conflict between the United States and China did not materialize, and Wambach is still hoping that a no-deal Brexit can be avoided.

Expectations of financial market experts for the economic development in the eurozone are also positive. The corresponding indicator for the eurozone reaches -22.4 points in September (+21.2 points). The indicator for the current economic situation in the eurozone dropped slightly by 1.1 points to -15.6 points.