ZEW Economic Sentiment Index For Germany Hits 4-Year High, EU Gains, In November; Current Economic Situation Index Drops

 
on November 19 2013 6:04 AM
Germany Industry
An overview shows the open-cast lignite mine Garzweiler of German power supplier RWE near the village of Grevenbroich, west of Cologne on Oct. 8, 2013. Reuters/Ina Fassbender

The ZEW economic sentiment index for the 17-nation euro zone, which gauges the six-month economic outlook in the region, rose to 60.2 in November, up by 1.1 points from 59.1 recorded in October, but falling short of analysts’ forecast of an uptick of 2 points in the index.

An indicator for the current economic situation in the euro zone decreased by 0.7 points to a level of minus 61.6 points, indicating that financial markets are optimistic about the bloc's future economic growth, but remain cautious about the present. The reading are measured and published by research group, ZEW. 

The ZEW index for Germany increased by 1.8 points to reach 54.6 points in November -- its highest mark since October 2009 -- and up from the 52.8 points registered in the previous month. Analysts had expected a reading of 54 points.

"Economic expectations for Germany have been hovering at a high level for months. The slightly improved economic outlook for the Eurozone might have contributed to this development," Clemens Fuest, president of ZEW, said in a statement.

However, the ZEW index of the current economic situation for Germany too slightly worsened in November, as the index fell by 1 point to hit 28.7 points in November, down from 29.7 points recorded in the previous month, and against economists’ forecast for a reading of 31 points.   

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