The ZEW economic outlook, reflecting the six month forecast based on a monthly survey among German investors, has declined slightly compared to the previous month, but remains moderately optimistic.
The index for the outlook of the German economy dropped by -1.3 basis points to 17.4 basis points and forecasts for the Eurozone fell by -1.9 basis points mom to an overall figure of 29 basis points.
At the same time, the assessment of the current economic climate in Germany improved slightly to 0.5 basis points compared to the previous month, views on the Eurozone climate rose to 2.9 basis points compared to November.
“The six month outlook for the German economy remains nevertheless positive. The current uncertainty on the formation of a new government in Germany has not had a significant impact on the economic outlook. However, respondents do see a negative impact of the ongoing Brexit negotiations as well as upcoming EU reforms” comments ZEW president Achim Wambach.