German ZEW Economic Sentiment rose sharply from 19.9 to 31.7 in March , well above expectation of 21.0. Current Situation Index ticked up slightly from -81.7 to -80.5, below expectation of -80.0.
Eurozone ZEW Economic Sentiment rose from 25.0 to 33.5, above expectation of 25.4. Current Situation Index fell -1.4 pts to -54.8.
ZEW President Professor Achim Wambach highlighted the “significantly improving” economic expectations for Germany. A key factor contributing to this optimism appears to be the widespread anticipation of an interest rate cut by ECB “in the next six months”, as expected by over 80% of survey participants.
Additionally, Wambach pointed out that the German export sector stands to benefit from “increased economic expectations for China “and the anticipated depreciation of Dollar against Euro.
Despite these positive developments in sentiment, Wambach cautioned that the assessment of the current economic situation remains at a very low level. “This development somewhat diminishes the increased economic expectations,” he added.
Full German ZEW release here.
