ZEW Indicator of Economic Sentiment

ZEW Economic Sentiment Indicator (ZEW-Indikator) is a widely recognized leading economic indicator produced by the ZEW – Leibniz Centre for European Economic Research in Germany. This indicator is designed to measure the sentiment and expectations of financial market experts and analysts regarding the economic outlook for Germany and the broader European economy.

The ZEW Economic Sentiment Indicator is based on a monthly survey of around 350 financial market experts and analysts who are asked to provide their assessments and expectations for the future economic situation. The survey focuses on expectations for the next six months and covers various economic factors such as inflation, interest rates, exchange rates, and overall economic conditions.

The indicator is calculated by taking the percentage of analysts and investors who are optimistic about the economic outlook and subtracting the percentage of those who are pessimistic. The resulting value provides a measure of the overall economic sentiment and expectations within the financial markets.

The ZEW Economic Sentiment Indicator is considered a valuable tool for assessing the economic outlook and can have a significant impact on financial markets. It is closely monitored by policymakers, economists, investors, and businesses as it provides valuable insights into the prevailing sentiment and expectations within the financial community.

Overall, the ZEW Economic Sentiment Indicator is an important gauge of economic sentiment and expectations, providing valuable insights into the views and assessments of financial market experts and analysts. It serves as a key reference point for assessing economic prospects and market dynamics in Germany and Europe.