Data published by the Leibniz Centre for European Economic Research (ZEW) showed that the indicator of German economic sentiment rose again in June, reaching its highest level since February 2022, but was below economists' forecasts. In contrast, the assessment of the economic situation has slightly deteriorated.
According to the report, the indicator of economic sentiment rose to 47.5 points compared to 47.1 points in May. The index remains in positive territory for the eighth month in a row. Economists had expected the index to rise to 50.0 points. Meanwhile, the index of the current economic situation fell to -73.8 points from -72.3 points in May.
“Both the sentiment and the situation indicators stagnate. These developments must be interpreted in the context of a constant situation indicator for the eurozone as a whole. In contrast, the inflation expectations of the respondents increased, which is likely related to the inflation rate in May, which turned out higher than what was expected,” said ZEW President Professor Achim Wambach.
The data also showed that the indicator of economic sentiment in the eurozone rose to 51.3 points (the highest value since July 2021) from 47.0 points in May. Consensus estimates suggested a rise to 47.8 points. The indicator of the current economic situation remained at -38.6 points and inflation expectations jumped by 11.7 points to -33.9 points.