Economic expectations of financial analysts and institutional investors have improved in the short term, according to the Center for European Economic Research (ZEW) in Mannheim, Germany. The corresponding index rose from 10.3 points in January to 26.0 points in February.
The assessment of the current economic situation also showed a slight improvement. The situation indicator for Germany increased by 1.9 points and now stands at -88.5 points.
The expectations of financial market experts for the economic development in the eurozone are currently at 24.2 points, a 6.2-point increase from the previous month. The assessment of the current economic situation in the eurozone also improved, with the situation indicator rising by 8.5 points to a new value of -45.3 points.
“Short before the election, the economic expectations show a significant improvement in February” commented ZEW President Achim Wambach on the latest results. “Hopes for a functional new federal government may have contributed to the increased optimism. The consumption demand of private households, which has been lacking, is also expected to pick up again in the next six months.”
“The recent interest rate cut by the ECB, which was a response to the weak economic development in the eurozone, may have also contributed to the improved prospects for the construction industry” Wambach said.