The German ZEW Index (a widely respected gauge of economic sentiment) continues to decline.From the announcement:
The ZEW Indicator of Economic Sentiment for Germany has dropped by 2.7 points in July 2012. This represents the third decline in a row. The indicator now stands at a level of minus 19.6 points. This value is below the indicator’s historical average of 24.0 points.
“The decline of the economic expectations concering the end of 2012 is flattening out gently. This could possibly be an early sign of an encouraging development in 2013. However, risks should not be underestimated. Besides the weak demand from the Eurozone for German exports, the German economy is also burdened by weakening growth dynamics in other important partner countries,” says ZEW President Prof. Dr. Dr. h.c. mult. Wolfgang Franz.
Although the assessment of the current economic situation for Germany is still in positive territory, the respective indicator has once again lost ground compared to the previous month. The indicator reflecting the assessment of the current economic situation in Germany has dropped by 12.1 points in July. It now stands at the 21.1 points-mark.
Economic expectations for the Eurozone have declined by 2.2 points to minus 22.3 points in July. The indicator for the current economic situation in the Eurozone remains almost unchanged at minus 72.9 points (up 0.3 points).