Call this a flattening of expectations — German business peoples’ view of current economic conditions has improved while their outlook for future conditions has fallen by more than expected:
The Mannheim-based centre for European Economic Research, or ZEW, said its economic expectations index fell to 21.2 in July from a reading of 28.7 last month. Economists had forecast a more modest decline to 26.0.
That stood in contrast to the ZEW’s current-conditions index rose to 14.6 from -7.9 in June, its first positive reading since July.
“Contrary to the positive assessment of the current economic situation financial experts expect that the dynamics in German business activity will slow down towards the end of this year due to still existing uncertainties regarding the handling of the crisis of financial markets and the crisis of sovereign debt,” said ZEW President Wolfgang Franz.