Data published by the Leibniz Centre for European Economic Research (ZEW) showed that the indicator of German economic sentiment rose sharply in April, exceeding economists' forecasts, and reaching its highest level since February 2022. However, the assessment of the economic situation in Germany has remained almost unchanged.
According to the report, the indicator of economic sentiment rose to 42.9 points compared to 31.7 points in March. The index remains in positive territory for the sixth month in a row. Economists had expected the index to rise to 35.1 points. Meanwhile, the index of the current economic situation rose to -79.2 points from -80.5 points in March.
“The global economic recovery raises expectations for Germany: half of respondents expect the country's economy to improve over the next six months. Further contributing to the heightened optimism are the much improved assessments of the situation and economic expectations in Germany’s export destinations. This is reflected, among other things, in the expected appreciation of the US dollar against the euro,” said ZEW President Professor Achim Wambach.
The data also showed that the indicator of economic sentiment in the eurozone rose to 43.9 points (the highest value since February 2022) from 33.5 points in March. Consensus estimates suggested a rise to 37.2 points. The indicator of the current economic situation rose to -48.8 points from -54.8 points in March and inflation expectations went up by 15.2 points to -49.1 points.