The ZEW Indicator of Economic Sentiment for Germany jumped 21.6 points from a month earlier to -22.5 in September 2019, recovering from its lowest level since December 2011 and easily beating market expectations of -37.0, as the rather strong fears that financial experts had in the previous month regarding a further intensification of the US-China trade conflict did not come true. In addition, hopes that a no deal Brexit can be avoided and the ECB's monetary policy stimulus also supported sentiment. Meanwhile, the assessment of the economic situation in Germany worsened by 6.4 points to -19.9 in September, the lowest since May 2010. Zew Economic Sentiment Index in Germany averaged 21.49 from 1991 until 2019, reaching an all time high of 89.60 in January of 2000 and a record low of -63.90 in July of 2008.
Zew Economic Sentiment Index in Germany is expected to be -22.50 by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Zew Economic Sentiment Index in Germany to stand at -4.00 in 12 months time. In the long-term, the Germany Zew Economic Sentiment Index is projected to trend around -3.00 in 2020, according to our econometric models.