Germany’s ZEW Economic Sentiment index jumped from 47.5 to 52.7 in July, beating expectations of 50.2 and marking the third consecutive monthly rise. Current Situation Index also improved sharply from -72 to -59.5, above forecast of -66.0. The data suggests that investor confidence is firming despite lingering global trade tensions, likely supported by hopes for a de-escalation in US-EU tariff threats and anticipated domestic fiscal stimulus.
Eurozone sentiment also edged up modestly, with the expectations index rising from 35.3 to 36.1, though falling short of the 37.8 consensus. The current conditions measure rose by 6.5 points to -24.2, signaling a gradual improvement in the broader bloc’s outlook.
ZEW President Achim Wambach noted that nearly two-thirds of respondents expect Germany’s economy to improve, citing optimism tied to a resolution of the US-EU trade standoff and government-led investment. Expectations were especially upbeat in sectors like machinery, metals, and electrical manufacturing.
