- ZEW
German economic sentiment improved in April, beating expectations, according to ZEW survey. Economic sentiment continued to advance, improving for the second consecutive month from the lowest level since October 2014 that was registered in February. The ZEW Centre for Economic Research report said that the index rose to 11.2 and gained 6.9 points compared to the previous month exceeding expectations of 8.0. Meanwhile, the index of Euro zone economic sentiment unexpectedly soared to 21.5 in April from 10.6 a month earlier, settling well above forecasts for a reading of 13.9. A lot of analysts assume that the rise of sentiment index confirms that the German economy has continued its solid growth performance. Domestic demand, and in particular private consumption, has become an important growth driver. Looking ahead, they believe the economy should continue its current positive, though not breathtakingly strong, momentum next year.
Nevertheless, the data does not change the fact that Germany's exports have been badly affected by the downturn in emerging markets. Thus, for its part, ZEW says that assessment of the current situation in Germany is worsening. In other words, Germany's past days are likely to be better than its near term outlook.
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