The ZEW Indicator of Economic Sentiment for Germany fell 3.4 points from a month earlier to -24.5 in July 2019, the lowest reading since last October and below market expectations of -22.3. The continued negative trend in incoming orders in the German industry is likely to have reinforced the financial market experts’ pessimistic sentiment, while the Iran conflict and the ongoing trade dispute between the US and China are weighing on the global economic outlook. Meanwhile, the assessment of the economic situation in Germany worsened by 8.9 points to a current reading of -1.1. Zew Economic Sentiment Index in Germany averaged 21.82 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 -12.00 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.