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ZEW Sentiment Indicators See Moderate April Declines

GERMAN DATA
MNI (London)

APRIL ZEW CURRENT CONDITIONS -30.8 (FCST -35.0); MAR -21.4

APRIL ZEW EXPECTATIONS -41.0 (FCST -48.5); MAR -39.3

  • Germany's ZEW sentiment indicators saw substantially milder declines than anticipated in the April survey.
  • The current conditions index fell by 9.4 points, less than the 13.6-point drop expected. The future expectations indicator inched down by 1.7 points, compared to a 9.2-point expected fall.
  • This is the second consecutive month of falling confidence since the onset of the Ukraine war, with both indicators hovering around the initial pandemic shock of March 2020.
  • We highlight that inflation expectations fell significantly by 43.4 points in April, a reduction of about half the inflation indicator's jump seen in March. Just under half of the surveyed experts saw inflation increasing in the next six months- an optimistic shift for this indicator.
  • The ECB has indicated two-way risks of dampened economic growth outlooks against a backdrop of soaring inflation intensified by the Ukraine war. Economic sentiment indicators will be vital in assessing the effects on growth expectations in the upcoming Thursday meeting.

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