Another Marked Increase in the ZEW Indicator

The ZEW Indicator of Economic Sentiment in Germany continues to improve in June 2025. At plus 47.5 points, the indicator is 22.3 points above the previous month’s reading. The assessment of the current economic situation also experiences an increase with the indicator for Germany rising by 10.0 points and thus settling at minus 72.0 points. This is the strongest increase observed in the indicator since April 2023. Nevertheless, the value continues to be the lowest reading among the countries analysed and in the eurozone.

“Confidence is picking up. In June 2025, the ZEW indicator sees another tangible improvement. Recent growth in investment and consumer demand have been contributing factors. This development also seems to strengthen the assessment that the fiscal policy measures announced by the new German government can provide a boost to the economy. Combined with the recent interest rate cuts by the ECB, this could bring economic stagnation in Germany, which has lasted for almost three years, to an end,” 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 June: Increasing by 23.7 points, it is currently at plus 35.3 points and thus in the positive range. The assessment of the current economic situation in the monetary union has also improved. At minus 30.7 points it is currently plus 11.7 points above the reading of the previous month.