German economic sentiment expectations rise in August

The German economic expectations rose further in August, with ZEW indicator climbing by 7.9 points to reach 34.2 points

The assessment of the current economic situation also showed considerable improvement, as the situation indicator for Germany climbed 16.5 points over the previous month to minus 61.1 points in August.

ZEW President Professor Achim Wambach stated that the positive trend in expectations consolidated further during the month.

Wambach noted that this trend likely resulted from good quarterly results and the recent high level in exports.

He added that the German economy continued to benefit from the federal government’s infrastructure programs, although record low water levels on the Rhine River presented an additional acute risk affecting economic activity.

All industries reported brighter expectations, especially the vehicle industry, where prospects improved by 22.2 points despite the balance remaining in negative territory.

The chemical and pharmaceutical industries, along with the mechanical engineering and metal industries, also recorded strong growth.

Expectations regarding private consumption increased by nine points to minus 6.2 points, while the construction industry improved by 1.4 points to reach 2.1 points.

Expectations for the eurozone also increased in August, with the indicator sitting eight points higher than in July at 31.4 points.

The assessment of the eurozone's economic situation improved strongly by 16.2 points but remained in negative territory at minus 21.5 points.