The ZEW Indicator of economic sentiment in Germany jumped 16.6 points to 56.1 points in August, the best reading in over three years and well above the historical average of 26.5 points.
The institute that compiles the respected survey of analysts noted, “A repeated rise of incoming orders and increasing exports have brightened the economic perspectives for Germany in the next months.
In line with the increase of the overall economic expectations for Germany the expectations for all surveyed sectors of the German economy and for the export-oriented sectors particularly, have noticeably improved.”
Germany did post an unexpected gain in 2Q GDP, and prospects for the global economy, especially Asia, have improved.
A recovery does appear to be taking hold in Europe’s largest economy. But in my view, the survey is reflecting runaway optimism in an environment that should reflect a more cautiously optimistic tone.
0 comments:
Post a Comment