ZEW Expectations Sentiment Fell in April

GERMANY APR ZEW ECONOMIC SENTIMENT +70.7; MAR +76.6

GERMANY APR CURRENT CONDITIONS -48.8; MAR -61.0

• ZEW Expectations fell by 5.9pt to 70.7 in Apr, in contrast to markets expectations of an uptick (BBG: 79.0)
• This marks the first decline after four consecutive months of gains and the lowest reading since Jan, nevertheless expectations remain at a very high level
• The ZEW Current Conditions rose markedly, up 12.2pt to -48.8, which is significantly better than anticipated (BBG: -55) and the highest level since Mar 2020.
• Nevertheless, the the current conditions index remains in deep negative territory, hence the divergence between the expectations and the current situation persists.
• Financial market experts are concerned about a stricter lockdown which led to a decrease in expectations for private consumption says ZEW President Achim Wambach.
• "Nevertheless, the outlook for exports is better than in the previous month", Wambach added.
• EZ economic sentiment dropped by 7.7pt to 66.3 in Apr, while current conditions edged up by 4.3pt to -65.5.
• Inflation expectations for the EZ declined 5.5pt to 75.1, although the indicator still signals rising inflation over the next 6 months.