Germany economic sentiment up again in May after stronger-than-expected Q1

LONDON (ICIS)–German economic sentiment improved further in May from the previous month following stronger-than-expected growth in the first quarter, research institute ZEW said on Tuesday.

Its sentiment indicator increased by 4.2 points from April to 47.1, the highest level since March 2022.

Source: ZEW

The Mannheim-based group’s assessment of the current economic situation in Germany was also higher, by 6.9 points to -72.3.

Source: ZEW

In the wider eurozone, ZEW’s economic sentiment indicator and current assessment were also up from April.

“The confidence increases. Following the stronger-than-expected growth of the German economy in the first quarter of 2024, both the assessment of the current situation and economic expectations have become more favourable,” ZEW President Achim Wambach said.

Signs of an economic recovery are growing, bolstered by better assessments of the overall eurozone and of China as a key export market.

“The increased optimism is reflected in particular in the sharp rise in expectations for domestic consumption, followed by the construction and machinery sectors,” Wambach added.