The ZEW Indicator of Economic Sentiment fell 5.9 points to 70.7 points. This was the first time that the indicator has experienced a drop since November 2020 and was well below economists’ forecast of 79.0.
Meanwhile, the assessment of the economic situation advanced 12.2 points to minus 48.8 points in April. The expected reading was minus 53.0.
Fears of a stricter lockdown have led to a decline in expectations for private consumption,” ZEW President Achim Wambach, said. Nevertheless, the outlook for exports is better than in the previous month.
Economic confidence in the euro area also weakened in April. The corresponding index declined 7.7 points to 66.3. By contrast, the indicator for the current economic situation climbed 4.3 points to a level of minus 65.5 points.