DEFINITION of 'ZEW Economic Sentiment'

The ZEW Economic Sentiment is a monthly economic survey. It's an aggregation of the sentiments of approximately 300 economists and analysts, used as an indicator of the economic future of Germany for the next six months. The survey shows the balance between those analysts who are optimistic about Germany's economic future and those who are not.

BREAKING DOWN 'ZEW Economic Sentiment'

ZEW stands for Zentrum für Europäische Wirtschaftsforschung, which, when translated, says, the Center for European Economic Research.

Specifics for ZEW Economic Sentiment

The ZEW Economic Sentiment takes the aggregate of 300 economists' and analysts' sentiments in order to get a sense of Germany's economic future. These experts come from banks, insurance companies and financial departments of selected corporations, according the ZEW website

They are asked about their expectations for the coming six-months, regarding the economy generally, inflation rates, interest rates, stock marketsexchange rates and oil prices. 

The ZEW Economic Sentiment covers the economic futures of several other countries and regions, as well, including Japan, the United States, Eurozone, and the UK, France and Italy. 

An index value greater than zero indicates optimism while a value below zero indicates pessimism.

 

RELATED TERMS
  1. Centre for European Economic Research

    A nonprofit economic research institution based in Germany involved ...
  2. Economic Conditions

    Economic conditions are the state of the economy in a country ...
  3. Sentiment Indicator

    Sentiment indicator refers to a graphical or numerical indicator ...
  4. Economic Growth Rate

    An economic growth rate is a measure of economic growth, typically ...
  5. Consumer Sentiment

    Consumer sentiment is astatistical measurement and economic indicator ...
  6. Market Sentiment

    The overall attitude of investors toward a particular security ...
Related Articles
  1. Trading

    5 Economic Reports That Affect The Euro

    There are hundreds of reports affecting the FX market. Find out which ones are the most relevant for traders.
  2. Investing

    The Difference Between Finance And Economics

    Learn the differences between these closely related disciplines and how they inform and influence each other.
  3. Insights

    Is Germany Carrying The European Economy?

    Germany has been widely viewed as the economic catalyst and stabilizer for the European Union and for good reason.
  4. Insights

    How To Read The Michigan Consumer Sentiment Index

    The Michigan Consumer Sentiment Index has provided a key leading indicator for investors and economists for decades. This respected index is published monthly from the results of random telephone ...
  5. Insights

    Is The EU Holding Germany Back?

    As Germany agrees to initiate bailout talks with Greece once again, could all of the EU's economic turmoil result in Germany being better off alone?
  6. Financial Advisor

    Why Positive Economic Data Pushes the Market Down

    Unemployment comes in higher than analysts’ expectations, and the market rallies 1% instead of dropping. GDP growth exceeds expectations slightly, and markets drop. Why could this be happening?
  7. Insights

    Economics Basics

    Learn economics principles such as the relationship of supply and demand, elasticity, utility, and more!
  8. Trading

    4 Key Indicators That Move The Markets

    Do you rely on indicators to make an investment move? Find out these key economic and market indicators to watch and react to market movements.
  9. Insights

    France's Economy: Wobbly But Still Important

    Which are the top macro-economic data sources for France? Here is the list to track economic indicators of France.
RELATED FAQS
  1. What Are the Best Measurements of Economic Growth?

    Learn how economists and statisticians track economic growth and why GDP might not be the best measurement of real economic ... Read Answer >>
  2. What do economists believe causes economic growth?

    Learn the different theories for what economists believe causes economic growth, including the big differences between supply-side ... Read Answer >>
  3. What economic indicators are especially important to oil traders?

    Economic indicators such as crude inventories and production levels are used by oil traders and investors to understand the ... Read Answer >>
  4. What is the difference between accounting and economics?

    Discover the difference between accounting and economics by comparing and contrasting the financial discipline of accounting ... Read Answer >>
  5. What's the difference between regular supply and demand and aggregate supply and ...

    Understand how businesses use supply and demand and aggregate supply and demand to forecast economic activity. Learn about ... Read Answer >>
  6. How does economics study human action and behavior?

    Find out why economics can be considered a deductive social science, like sociology, and how human action and behavior informs ... Read Answer >>
Hot Definitions
  1. Net Present Value - NPV

    Net Present Value (NPV) is the difference between the present value of cash inflows and the present value of cash outflows ...
  2. Price-Earnings Ratio - P/E Ratio

    The Price-to-Earnings Ratio or P/E ratio is a ratio for valuing a company that measures its current share price relative ...
  3. Internal Rate of Return - IRR

    Internal Rate of Return (IRR) is a metric used in capital budgeting to estimate the profitability of potential investments.
  4. Limit Order

    An order placed with a brokerage to buy or sell a set number of shares at a specified price or better.
  5. Current Ratio

    The current ratio is a liquidity ratio that measures a company's ability to pay short-term and long-term obligations.
  6. Return on Investment (ROI)

    Return on Investment (ROI) is a performance measure used to evaluate the efficiency of an investment or compare the efficiency ...
Trading Center