Recruit Sales in Germany Covid-19 Update Bulletin June 2020

Recruit Sales in Germany Bulletin June 2020 - an Update 

What they are saying.....

ZEW Survey June 2020

The ZEW Survey has reported that despite the severe recession, stock market professionals are increasingly optimistic about the prospects for the German economy.

The barometer of their expectations for the next six months rose by 12.4 to plus 63.4 points in June, the third time in a row, as the Mannheim Centre for European Economic Research (ZEW) said on Tuesday, citing its monthly survey. 

Every month, ZEW surveys around 200 analysts and institutional investors on their assessment of the current economic situation and expected developments.

Economists had expected 60 points. "Confidence is increasing that the economic downturn will be over in summer 2020," said ZEW President Achim Wambach.

The expectations for individual industries are still very different. "For export-oriented sectors such as vehicles and mechanical engineering as well as the financial sector, earnings expectations are clearly negative." The outlook for IT technologies, telecommunications, and consumer-related services, on the other hand, is quite positive.

In the third and fourth quarters, the experts still expect only a “relatively slow increase in economic value added”. The stock marketers also assessed the situation less sceptically than last: this barometer rose by 10.4 to minus 83.1

However, the corona crisis will not be over by summer, the respondents agree. For the third and fourth quarters, too, they expect only a "relatively slow increase in economic value added".

Expectations for the eurozone also rose in June, from 12.6 to 58.6 points. The indicator for the current economic situation climbed by 5.4 points to 89.6 points.

Compiled by SA in June 2020 from various news sources

*Please note the information contained herein is an aggregate of news stories, by commentators widely available - readers should seek independent verification, and this in no way represents the views or opinions of Standley Associates.

We will continue to check the news reports and will provide monthly summaries of the trends.