Gavekal Capital: Few Bright Spots in the German ZEW Survey

Tuesday, March 18, 2014

Few Bright Spots in the German ZEW Survey

The economic outlook in Germany weakened for the third month in a row, according to the latest ZEW survey:

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Anticipation of stock market gains has fallen steadily since last September:

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The expectation for improvement in profits (red line) fell in a number of industries in March:

Autos
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Banks
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Information Technology
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Services
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Telecommunications
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On the bright side, there has been a continued rise in profit expectations for the chemical and pharmaceutical industry...

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And there seem to be few complaints about the current economic situation:

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Compared to its neighbors, we find similar declines in sentiment for the U.K. (and Europe as a whole) while sentiment actually rose in France and Italy:

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