Despite stronger expectations, assessments of current conditions weakened slightly. The ZEW indicator measuring Germany’s present economic situation fell by 2.3 points month on month to minus 81 points, underlining the continued strain on near-term activity, ZEW said in a press release.
The divergence between improving expectations and a still weak current assessment suggests confidence in a gradual recovery ahead, even as Germany continues to face subdued economic conditions in the short term.
“Expectations have become more positive. After three years of economic stagnation, chances for a recovery of the economy are good and this is reflected in the sentiment. The expansive fiscal policy will provide new momentum to the German economy. However, the recovery remains fragile. Measures for dealing with persistent trade conflicts, geopolitical tensions and the absence of investments are likely to figure on the reform agenda for 2026 as well,” said Achim Wambach, president professor at ZEW and PhD on the most recent survey results.
The expectations for the eurozone—currently at plus 33.7 points—have risen by plus 8.7 points compared to the previous month’s value. The improvement is therefore greater than the one for Germany. In contrast, the assessment of the economic situation has remained practically unchanged and are now at minus 28.5 points, -1.2 points below the previous month’s reading, added the release.
ALCHEMPro News Desk (SG)
Receive daily prices and market insights straight to your inbox. Subscribe to AlchemPro Weekly!
marketing@alchempro.com
