According to the report from ZEW, the Indicator of Economic Sentiment for Germany decreased in the October 2021 survey, falling 4.2 points to a new reading of 22.3 points compared to September. This is the fifth time in a row that the indicator has experienced a fall. The assessment of the economic situation in Germany has worsened in the current survey, and currently stands at 21.6 points, 10.3 points lower than in the previous month. This is the first time that the indicator has recorded a decline after its continuous increase between February and September 2021. Compared to the previous month, the outlook for the economic development in the next six months has noticeably deteriorated.
The financial market experts’ sentiment concerning the economic development of the eurozone also decreased for the fifth consecutive time, bringing the indicator to a current level of 21.0 points, 10.1 points lower than in the previous month. The indicator for the current economic situation in the eurozone fell 6.6 points to a level of 15.9 points compared to September.
Inflation expectations for the eurozone fell slightly. The inflation indicator stands at 17.1 points in October, 3.0 points lower than in the previous month. However, 49.1 per cent of the experts still expect the inflation rate to rise further in the next six months.