CdM | Germany’s economic expectations ‘improve considerably’ in March. The ZEW indicator of economic sentiment stands at 51.6 points, which is 25.6 points above the previous month’s figure and exceeding the market forecast of 48.1.
The last time the indicator increased so substantially was in January 2023.
‘This optimism is probably due to positive signals about future German fiscal policy, such as the agreement on the multi-billion-euro financial package for the federal budget,’ said ZEW President Achim Wambach.
He adds that, in particular, the outlook has improved for metal and steel manufacturers, as well as for the mechanical engineering sector.
‘Last but not least, the sixth consecutive cut in interest rates by the European Central Bank (ECB) translates into favourable financing conditions for households and businesses,’ he concludes.
Meanwhile, the assessment of the current economic situation remains stable. The corresponding indicator increased slightly by 0.9 points and now stands at -87.6 points. However, the figure is lower than the -80.5 estimated by the consensus.
On the other hand, as regards the Eurozone, the perception of experts in the financial market regarding economic development is also on the rise. The indicator has risen 15.6 points, currently standing at 39.8 points. The assessment of the current economic situation in the monetary union remains fairly stable, at -45.2 points, which is 0.1 points above the February figure.
