Germany’s ZEW Economic Sentiment index rose more than expected in September, climbing from 34.7 to 37.3 against forecasts of 25.0. The improvement highlights growing optimism among financial market experts, particularly toward export-oriented sectors. However, Current Situation index deteriorated further from -68.6 to -76.4, missing expectations of -65.0.
For the Eurozone, ZEW sentiment index also improved, rising from 25.1 to 26.1, ahead of consensus at 20.3. Current Situation measure edged higher by 2.4 points to -28.8.
ZEW President Achim Wambach noted that while the sentiment indicator has stabilized, “the economic situation has worsened” and significant risks remain. He cited uncertainty over U.S. tariff policy and Germany’s upcoming “autumn of reforms.” Outlooks have improved for autos, chemicals, pharmaceuticals, and metals, but sentiment for these sectors remains in negative territory, showing recovery prospects are fragile.
