Germany’s economic confidence improves sharply in July: ZEW

Germany’s economic sentiment improved sharply in July, with the ZEW Indicator of Economic Sentiment rising 15.8 points to 26.3, signalling growing confidence in the country’s economic recovery. Expectations also strengthened across the eurozone, while assessments of current conditions remained negative but improved in both Germany and the bloc.ZEW President Professor Achim Wambach said the outlook continues to improve as reforms begin to show results. Export-oriented industries and domestic demand are experiencing sustained growth, although uncertainty surrounding the Iran conflict and oil prices remains a key risk to Germany’s recovery.

Among sectors, domestic demand recorded the strongest improvement, with its sentiment balance rising by 14.7 points. The chemical, pharmaceutical and metal industries also improved but remained in negative territory. Construction rebounded by 12.7 points, moving closer to neutral, while the automotive sector weakened, with its balance falling 11.3 points to minus 46.6.

Germany’s ZEW economic sentiment indicator rose 15.8 points to 26.3 in July, reflecting stronger confidence in economic recovery driven by reforms, exports and domestic demand.
The eurozone sentiment index also improved to 23.4.
Most industries showed better prospects.
Current economic conditions remained negative but improved in Germany and the eurozone.

For the eurozone, the ZEW economic sentiment indicator climbed 13.9 points to 23.4, while the current conditions indicator improved by 5.7 points to minus 37.7.

Fibre2Fashion News Desk (CG)