ZEW Index: The Recovery Continues

The ZEW Indicator of Economic Sentiment for Germany continues to improve in July 2025. At plus 52.7 points, the indicator is 5.2 points above the previous month’s reading. The assessment of the current economic situation also experiences a significant increase with the indicator for the current situation rising by 12.5 points and thus settling at minus 59.5 points.

“After the strong improvements of the past two months, the positive sentiment among respondents is becoming more firmly established. Despite ongoing uncertainty due to global trade conflicts, nearly two-thirds of the experts expect
the German economy to improve. Hopes for a quick resolution to the US-EU tariff dispute, along with potential economic stimulus from the German government’s planned immediate investment programme, appear to be shaping overall sentiment. The increased optimism is particularly reflected in significantly improved expectations for mechanical engineering and metal production, followed by the electrical industry,” ZEW President Professor Achim Wambach, PhD comments on the recent results.

The sentiment concerning the economic development in the eurozone has also substantially improved in July: At plus 36.1 points, it is 0.8 points above the previous month’s value. The assessment of the current economic situation in the monetary union has also improved, although not as strongly as in Germany. At minus 24.2 points, it is currently 6.5 points above the reading of the previous month.