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ZEW Survey Signals Improved Outlooks in 2023

GERMAN DATA
MNI (London)

GERMANY FEB ZEW EXPECTATIONS 28.1 (FCST 23.0); JAN 16.9

GERMANY FEB ZEW CURRENT SITUATION -45.1 (FCST -50.5); JAN -58.6

  • The ZEW survey of financial market experts surprised to the upside again in February, with economic sentiment and expectations increasing 11.2 points and 13.5 points respectively.
  • This implies four/five months of improving sentiment for Germany, albeit remaining deeply negative in the current situation assessment.
  • Expectations were driven up by higher profit expectations for consumer, energy and export sectors.
  • This alongside easing inflation and lower energy prices (assisted by the introduction of government price caps) implies more positive growth outlooks for Germany in 2023, after the economy shrank by -0.2% q/q in Q4 following a pullback in household consumption.

Source: MNI / ZEW

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