German ZEW economic sentiment unchanged in December

German economic sentiment was unchanged in December, according to the latest survey form the ZEW Center for European Economic Research in Mannheim.

The index of economic sentiment remained at 13.8, coming in just a touch below expectations for a reading of 14.0.

However, the current situation index rose to 63.5 from 58.8 the month before, beating estimates of 59.1.

ZEW President Professor Achim Wambach said: “The ZEW indicator of economic sentiment remains at the same level; however, given the fact that the evaluation of the current situation has once again recorded an improvement, the overall assessment is quite positive.

“This is supported by the recently published positive GDP growth figures for the euro area in the third quarter. The considerable economic risks arising from the tense situation in the Italian banking sector, as well as the political risks surrounding upcoming elections in Europe, seem to have faded into the background at the moment.”

Pantheon Macroeconomics said the survey was “underwhelming”.

“Investor confidence does not always correlate with economic sentiment, but the unchanged headline overall points to a relatively subdued IFO print in December,” it said.