ZEW Indicator Remains Stable

After a strong increase at the beginning of the year, expectations about Germany’s economic situation stabilise in February at plus 58.3 points – minus 1.3 points lower than in the previous month. The assessment of the current economic situation continues to improve, with the situation indicator for Germany rising by plus 6.8 points compared to the previous month and reaching minus 65.9 points.

“The ZEW Indicator remains stable. The German economy has entered a phase of recovery, albeit a fragile one. There are still considerable structural challenges, especially for industry and private investment. The impending reforms of the system of social insurances should be used to sign ificantly enhance Germany’s attractiveness as a business location,” comments ZEW President Professor Achim Wambach, PhD on the current survey results. 

The export-oriented sectors show moderate to strong improvements in February. Prospects have particularly improved for the chemical and pharmaceutical industries (plus 7.5 points ), steel and metal production (plus 8.6 points) and mechanical engineering (plus 10.9 points). This likely reflects better than expected incoming orders at the end of 2025. Despite continuing uncertainty, prospects for private consumption are improving (plus 6.0 points). In contrast, banks and insurances and the information technology industry are experiencing a negative development.

The expectations for the eurozone also show little change. They are currently at plus 39.4 points and thus minus 1.4 points above the previous month’s value. The assessment of the economic situation has increased and is now at minus 13.6 points, exceed ing the previous month’s reading by 4.5 points.