Macro Monday 38 - German Zew Sentiment Index (extra chart)
Updated
Macro Monday 38 - Please review the full report shared prior to this. This is only the German chart in Isolation.
GERMAN ZEW INDEX
The German ZEW Index data is not derived from all the countries in Europe, it is derived from the views of collection of 350 economists and analysts that operate from and represent the German economy. As Germany is the largest economy within the Euro Area, its performance significantly impacts the overall region and this this metric could be considered the economic sentiment spearhead of Europe. Germany is also the 4th largest economy in the world by nominal GDP. As of 2023, its nominal GDP stands at approximately $4.43 trillion. This index could be monitored as a measure of not only European sentiment but as an important global sentiment gauge.
How to read the chart
The index ranges from -100 (pessimism) to +100 (optimism). 0 is neutral however the historical average reading for the German ZEW chart is 20.79 which is the point where the red area meets the green area on the chart. We show on the chart if we are above or below the average levels of optimism.
The current reading of 19.9 indicates current optimism among analysts for the next 6 months, however we are below the historical average of 20.79 thus a definitive move above this level this coming Tuesday could be a confirmation step into potential sustained optimism.
The Trend
Sentiment made a recovery from -61 in Sept 2022 to +19.9 in Feb 2024. We have moved from deep in negative sentiment territory into positive numbers but we are not above the historic average of 20.79 yet.
Lets see how both perform this coming Tuesday. The beauty of these charts is that you can review both on my Trading View at any stage, press play and it will update with the most recent release. This way you will have a full explainer of what this dataset is and can keep yourself up to date on its direction with the color coded map, the average line and the neutral line, all of which will at a glance give you a good indication of where we stand in terms of trend and sentiment. I'll keep you informed here too
Thanks for coming along
PUKA
GERMAN ZEW INDEX
The German ZEW Index data is not derived from all the countries in Europe, it is derived from the views of collection of 350 economists and analysts that operate from and represent the German economy. As Germany is the largest economy within the Euro Area, its performance significantly impacts the overall region and this this metric could be considered the economic sentiment spearhead of Europe. Germany is also the 4th largest economy in the world by nominal GDP. As of 2023, its nominal GDP stands at approximately $4.43 trillion. This index could be monitored as a measure of not only European sentiment but as an important global sentiment gauge.
How to read the chart
The index ranges from -100 (pessimism) to +100 (optimism). 0 is neutral however the historical average reading for the German ZEW chart is 20.79 which is the point where the red area meets the green area on the chart. We show on the chart if we are above or below the average levels of optimism.
The current reading of 19.9 indicates current optimism among analysts for the next 6 months, however we are below the historical average of 20.79 thus a definitive move above this level this coming Tuesday could be a confirmation step into potential sustained optimism.
The Trend
Sentiment made a recovery from -61 in Sept 2022 to +19.9 in Feb 2024. We have moved from deep in negative sentiment territory into positive numbers but we are not above the historic average of 20.79 yet.
Lets see how both perform this coming Tuesday. The beauty of these charts is that you can review both on my Trading View at any stage, press play and it will update with the most recent release. This way you will have a full explainer of what this dataset is and can keep yourself up to date on its direction with the color coded map, the average line and the neutral line, all of which will at a glance give you a good indication of where we stand in terms of trend and sentiment. I'll keep you informed here too
Thanks for coming along
PUKA
Note
German ZEW Economic Sentiment Index Rep: 31.7 ✅ Higher Than Expected ✅
Exp: 20.5
Prev: 19.9
Sentiment in the largest economy in Europe and the 4th largest economy in the world exceeded expectations today rising from 19.9 to 31.7
Now well above the historic average of 20.79 and breaking above the most recent high of 27 from Feb 2023, economic sentiment shifts to the positive for Germany
How to read the chart
The index ranges from -100 (pessimism) to +100 (optimism). 0 is neutral however the historical average reading for the German ZEW chart is 20.79 which is the point where the red area meets the green area on the chart. We show on the chart if we are above or below the average levels of optimism.
This soft data is compiled from surveys collected from 350 economists and analysts that operate from and represent the German economy.
The calculation of the German ZEW Economic Sentiment Index involves the difference between the percentage of analysts who are optimistic and the percentage of analysts who are pessimistic about economic development.
PUKA
Note
GERMAN ZEW Economic Sentiment Index (APR)Rep: 42.9 ✅Higher than Expected ✅
Exp: 35.9
Prev: 31.7 (no revision)
This indicator is a forward looking Economists outlook for Germany which is the 4th largest economy in the world.
Similar result as the Euro Area ZEW Economic Index
The data released today shows a strong increase in optimism from 31.7 in March to 42.9 in April 2024. The German ZEW Index is reaching levels not seen since Feb 2022 which were at 54.3 (a substantial 11.4 higher).
✅The index is well above its neutral level of 0 and well above its historical average of 20.79
The 350 German Economists that complete the surveys are suggesting that the 6 month forward outlook for Germany is improving but at a slower pace to the Euro Area ZEW Index, regardless both are quite optimistic.
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