German ZEW Declines in April; First Drop Since November

13 April 2021

By David Barwick – FRANKFURT (Econostream) – The ZEW German economic sentiment indicator headed back down in April with a decline of 5.9 points to 70.7, the first decrease since last November, economic research institute ZEW said on Tuesday, observing that the index remained elevated nonetheless.

Moreover, financial market participants assessed the current situation much more positively, as the subindex rose 12.2 points to -48.8. This was approximately equal to the level of March 2020, ZEW said.

‘Fears of a stricter lockdown have led to a decline in expectations for private consumption’, said ZEW President Achim Wambach in a press release. ‘Nevertheless, the outlook for exports is better than in the previous month.’

For the euro area as a whole, survey respondents were also less optimistic, with that index down 7.7 points to 66.3. The indicator for the current economic situation in the euro area was up 4.3 points to -65.5.

Eurozone inflation expectations captured by the survey were down 5.5 points to 75.1.