Survey-Based Inflation Expectations Sentiment

The German Institute for Economic Research (DIW) has adjusted its economic forecast, now anticipating a recession in Germany during the spring and summer of 2024.

This downgrade reflects a notable shift in sentiment as the country grapples with persistent inflationary pressures and declining consumer confidence. The recent rate of change in economic activity has slipped into negative territory, with a three-month rolling change of -0.049, indicating a contraction in growth momentum. The sentiment surrounding the German economy remains cautious, with a score of -0.8 reflecting heightened concerns among investors. Furthermore, the adjusted sentiment score stands at 100, signifying extreme market sentiment, while the topic coverage has stabilized at 61, suggesting a balanced but wary focus among analysts and market participants.

As the outlook dims, stakeholders will be closely monitoring economic indicators for signs of recovery or further deterioration in this key European economy.