2020.08.1111:12:00UTC+00German ZEW Economic Confidence Strengthens Unexpectedly

Germany's economic confidence improved unexpectedly in August on hopes of a speedy recovery from the coronavirus pandemic driven downturn, survey data from the ZEW - Leibniz Centre for European Economic Research showed Tuesday.

The ZEW Indicator of Economic Sentiment increased unexpectedly to 71.5 in August from 59.3 in July. The score was forecast to fall to 58.0.

Meanwhile, the current conditions index dropped 0.4 points to -81.3 in August, while it was expected to rise to -68.8.

"Hopes for a speedy economic recovery have continued to grow, but the assessment of the situation is improving only slowly," ZEW President Achim Wambach, said.

Experts in the individual sectors expect to see a general recovery, especially in the domestic sectors, Wambach noted. However, the still very poor earnings expectations for the banking sector and insurers regarding the coming six months give cause for concern.

According to official data, the largest euro area economy contracted by a record 10.1 percent in the second quarter after shrinking 2 percent in the first quarter.

Financial market experts' sentiment concerning the economic development of the Eurozone improved in August. The corresponding indicator climbed 4.4 points to 64.0 point.

However, the indicator for the current economic situation in the currency bloc fell 1.1 points to minus 89.8 points in August.