Hope for an Upturn Remains

Expectations about Germany’s economic situation increase slightly in October 2025, settling at plus 39.3 points and thereby exceeding the reading of the previous month by plus 2.0 points. In contrast, assessments of the current economic situation continue to follow a negative trend. The situation indicator for Germany is minus 80.0 points, which translates into a decline of minus 3.6 points compared to the previous month’s value.

“Experts are still hoping for an upturn in the medium term. Despite persistent global uncertainties and the lack of clarity regarding the implementation of the state investment programme, the ZEW indicator sees a slight increase in October,” comments ZEW President Professor Achim Wambach, PhD on the most recent survey results.

After the recent slump in exports to China, expectations for the export-intensive sectors of the economy have partly improved markedly in October, especially in the metal production, pharmaceutical and mechanical engineering industries and in the electrical equipment manufacturing sector. However, the automotive sector is an exception with a slightly deteriorating indicator.
 
Driven by the budget dispute in France, the expectations for the eurozone exhibit a moderate decline and are currently at plus 22.7 points – minus 3.4 points below the previous month’s value. The assessments of the economic situation are characterised by a similar deterioration. At minus 31.8 points, they fall short of the previous month’s reading by minus 3.0 points.