‘The fact that the ZEW index remains in positive territory means that the majority of investors still see economic conditions improving in the next six months.’ – Jennifer McKeown, Capital Economics
The mood of German investors deteriorated unexpectedly in June, official figures showed on Tuesday. The Mannheim-based ZEW reported that its Economic Sentiment Index dropped to 18.6 in June from the preceding month’s 20.6, whereas analysts anticipated an increase to 21.6 points during the reported month. Meanwhile, the Current Conditions Index surged to 88.0, the highest level since July 2011, up from May’s 83.9 points. The German Economy Minister said on Tuesday that the German economy was continuing performing strongly in the Q2 of 2017, supported by higher private and state spending and strong industrial activity growth. Moreover, he said that German exports growth also provided a significant boost to the economy. Back in May, the Munich-based Ifo Institute reported that its Economic Sentiment Index hit its all-time high. The next Ifo report will be published on June 26. Apart from that, ZEW said that its measure for expectations in the Euro zone advanced to 37.7 points in June, following the prior month’s 35.1 and topping expectations for a climb to 37.2 points.
