Germany's economic sentiment declines for 1st time since July '23: ZEW

18 Jul '24

1 min read

Germany's economic sentiment declines for 1st time since July '23: ZEW

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Insights

Germany's economic sentiment fell in July 2024 for the first time since July 2023, according to a ZEW survey, dropping 5.7 points to 41.8.
Despite this, Germany's economic situation improved slightly, rising 4.9 points to minus 68.9.
Eurozone sentiment also declined, falling 7.6 points to 43.7, while the situation indicator increased slightly to minus 36.1.

The indicator of economic sentiment for Germany has recorded a decline in the July 2024 survey, marking its first drop since July 2023, according to ZEW. The indicator now stands at 41.8 points, a decrease of 5.7 points from its June value.

Despite this decline in sentiment, the assessment of the economic situation in Germany showed a slight improvement. The corresponding indicator rose by 4.9 points, bringing it to a new value of minus 68.9 points.

Financial market experts' sentiment regarding the economic development of the eurozone also experienced a downturn in July. The sentiment indicator for the eurozone fell by 7.6 points compared to June, landing at 43.7 points. However, the situation indicator for the eurozone showed minimal change, increasing by 2.5 points to reach a new reading of minus 36.1 points, as per ZEW.

“The economic outlook is worsening. For the first time in a year, economic expectations for Germany are falling. The fact that German exports decreased more than expected in May, the political uncertainty in France and the lack of clarity regarding the future monetary policy by the ECB have contributed to this development,” said ZEW president professor Achim Wambach.

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