Germany ZEW Survey Continues to Disappoint

The ZEW Survey of economic expectations in Germany has fallen since the beginning of the year.  As we have seen before (here), the current situation component remains benign while expectations for an improvement in the economy continue to decline.




For the first time this year, more participants are signaling the belief that inflation and long-term interest rates will decrease (black lines):




Expectations for a decline in the stock market have ticked up as well (black line):



If past correlations hold, German GDP would appear to have limited room for continued expansion: