Economic expectations in Germany and the euro zone, as measured by the ZEW Indicator of Economic Sentiment, declined in February, a statement from the ZEW Centre For European Economic Research showed Tuesday.
The indicator for Germany fell by 6 points to 55.7 points while economic expectations for the euro zone lost 4.8 points to stand at 68.5 points. The index measures economic outlook for the upcoming six-month period. And, according to the ZEW statement, the decline in sentiment can be attributed to concerns about the future strength of the economic recovery in the U.S., along with concerns about market volatility in emerging markets.
While these leading indicators gave cause for concern in the medium term, ZEW President Clemens Fuest said: “This month’s decline in economic expectations must not be overstated. The majority of surveyed financial market experts remain optimistic.”
Indicators that reflect assessments of the current economic situation in Germany showed a gain of 8.8 points in February to a reading of 50 -- its highest level since August 2011, according to the statement. And, the measure that assesses the current economic situation in the euro zone rose by 8 points to a level of minus 40.2 points.