ZEW

The ZEW Indicator of Economic Sentiment is a monthly sentiment index. Up to 350 financial experts take part in the survey. Like the Ifo, it is a “diffusion index.” That is, the indicator reflects the difference between the percent of analysts who are optimistic and the percent who are pessimistic for the expected economic development in Germany in six months. The survey also asks for the expectations for the Eurozone, Japan, Great Britain and the US. The level of the ZEW does not reliably predict the pace of economic growth. However, the ZEW tends to signal economic turning points some four to six months ahead.