The ZEW Economic Sentiment Index for Germany and the Eurozone recorded a strong increase during June, confirming the continued improvement in economic sentiment for the second consecutive month, reflecting market optimism regarding the future performance of the German and European economies.
According to data released today, Tuesday, by the ZEW Institute in Germany, the ZEW Economic Sentiment Index for Germany rose to 47.5 points, exceeding expectations which indicated a level of only 34.8 points, while the previous reading was at 25.2 points in May. This indicates a significant improvement in economic expectations among investors and analysts in the largest European economy.
At the same time, the ZEW Economic Sentiment Index for the Eurozone reached 35.3 points during June, surpassing estimates which anticipated a score of only 23.5 points. The previous reading of the index was at 11.6 points in May, indicating that the improvement in sentiment is not limited to Germany alone, but extends to cover the entire Eurozone.
The ZEW Economic Sentiment Index is based on a monthly survey involving approximately 275 experts and financial analysts in Germany, who assess economic expectations for the upcoming six months, making it one of the leading indicators relied upon by markets to gauge growth and recession trends in the near future.
The rise in the ZEW Economic Sentiment Index this month is particularly significant given the uncertainty surrounding the European Central Bank's monetary policy, as well as the challenges facing European economies in terms of inflation and demand. The current reading suggests that investor confidence has begun to recover strongly, which may lead to new moves in fiscal and monetary policies in the upcoming period.
