The ZEW Indicator of Economic Sentiment for the Euro Area edged down 0.1 points from the previous month to -20.3 in July 2019, compared to market expectations of -20.9. That was the lowest reading since January. In July, 51.1 percent of the surveyed analysts expected no changes in the economic activity over the next six months and 34.6 percent expected it to get worse while 14.3 percent predicted an improvement. Meantime, the indicator for the current economic situation dropped 6.9 points to -10.6 in July. Zew Economic Sentiment Index in the Euro Area averaged 22.96 from 1999 until 2019, reaching an all time high of 89.90 in January of 2000 and a record low of -63.70 in July of 2008.
Zew Economic Sentiment Index in Euro Area is expected to be -8.00 by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Zew Economic Sentiment Index in Euro Area to stand at 4.00 in 12 months time. In the long-term, the Euro Area Zew Economic Sentiment Index is projected to trend around -6.00 in 2020, according to our econometric models.