FXstreet.com (Barcelona) - German economic climate has stabilized in a historically low level despite the slight drop posted in May, although the assessment of the current situation has improved, according to data released by the ZEW Institute of economic research.
In May, the German economic sentiment has dropped 0.7 points to -41.4 points, stabilizing in levels well below the 29.6 points historical average.
German economic sentiment seems to be influenced by two main factors, in one hand, the economic expectations for the United States for the next six months and therefore for German exports, on the other hand, inflationary risks remain high, which could affect negatively private consumption.
The assessment of the current situation has increased 5.4 points in May reaching 38.6 points. Economic expectations for the Euro Zone have increased 1.2 points to -43.6 points.