German ZEW economic sentiment data surprises to the upside
(Kitco News) - German ZEW economic sentiment data for November jumped to 31.7 from the previous reading of 22.3. This is also much higher than the economist's expectations of 20.0. Importantly this data point is a forward-looking measure of German investor confidence and it rose unexpectedly this month, but optimism surrounding the current situation was still low as states announced new restrictions to stop the latest wave of Covid-19.
Prior to the data Lloyds bank noted, "German ZEW survey will provide one of the first indications of strength of Eurozone activity in November. The ZEW is a survey of the views on economic prospects from financial professionals rather than businesses, but it sometimes provides a good early guide to business surveys. We have pencilled in modest falls in both the current situation and expectations components. That will probably reinforce financial market expectations that the European Central Bank is unlikely to raise interest rates anytime soon."
The report said, “The renewed decline in the assessment of the economic situation shows that the experts assume that the supply bottlenecks for raw materials and intermediate products as well as the high inflation rate will have a negative impact on the economic development in the current quarter,” said ZEW president Achim Wambach. “For the first quarter of 2022, they expect growth to pick up again and inflation to fall both in Germany and the Eurozone.”
German ZEW Economic Sentiment Nov: 31.7 (est 20.0; prev 22.3)
ZEW Current Conditions Nov: 12.5 (est 18.0; prev 21.6)
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