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German ZEW economic sentiment drops more-than-expected

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Forex Pros - German economic sentiment fell significantly more-than-expected in May, dropping for the third consecutive month, industry data showed on Tuesday.

In a report, the ZEW Centre for Economic Research said that its index of German economic sentiment fell to 3.1 in May, down from 7.6 in April.

Analysts had expected the index to decline to 4.7 in May.

The report showed that the assessment of the current economic situation in Germany rose by 4.4 to 91.5, an all-time high.

On the index, a level above 0.0 indicates optimism; a level below 0.0 indicates pessimism.

Meanwhile, economic sentiment in the euro zone fell more-than-expected in May, dropping to 13.6 from 19.7 in April. Economists had expected euro zone economic sentiment to decline to 17.9.

The indicator for the current economic situation in the euro zone has improved by 8.0 points and now stands at 13.6.

Commenting on the report, ZEW President Wolfgang Franz said, "It came as a surprise that the German economy recovered from the crisis that quickly. This strong dynamic is not going to last undamped. Also, risks, such as the crisis in the euro zone and global economic imbalances, should be recognized."

Following the release of the data, the euro was up against the U.S. dollar, with EUR/USD climbing 0.29% to hit 1.4202.

Meanwhile, European stock markets were mixed. The EURO STOXX 50 added 0.25%, France's CAC 40 edged 0.1% higher, Germany's DAX slumped 0.55%, while the FTSE 100 was down 0.1%.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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