German Economic Sentiment Continues to Improve in April

A closely-watched barometer of German economic sentiment approached a two-year high in April as financial analysts’ expectations regarding the current situation in the eurozone’s largest economy brightened against a backdrop of rising industrial production and strengthening in the construction sector.

The ZEW Indicator of Economic Sentiment for Germany increased by 6.7 points to 19.5 points in April 2017, marking its highest reading since August 2015, according to the Mannheim-based Center for European Economic Research (ZEW), which compiles the monthly report that is based on survey data from 204 analysts.

A sub-index measuring analysts’ views about the current economic situation in Germany also climbed, rising by 2.8 points to 80.1 points in April, representing the highest level for this indicator since July 2011. Financial market experts’ expectations regarding economic development in the eurozone improved by 0.7 points, bringing the expectation indicator up to a current level of 26.3 points. Meanwhile, the indicator for the current economic situation in the eurozone registered a reading of 11.5 points, 4.1 points higher than in March and the highest level since May 2008.

By Sherwood Contributor