Home breadcru News breadcru Announcement breadcru Germany's economy shows signs of rebound as LEI rises 0.8% in May

Germany's economy shows signs of rebound as LEI rises 0.8% in May

14 Jul '25
2 min read
Germany's economy shows signs of rebound as LEI rises 0.8% in May
Pic: Shutterstock

Insights

  • Germany's Leading Economic Index rose by 0.8 per cent in May 2025 to 87.7, its strongest monthly gain in five years, signalling easing economic headwinds.
  • The rebound was driven by improved stock prices, consumer confidence, and investment orders.
  • The Coincident Economic Index remained flat.
  • The Conference Board projects a mild recovery, with Germany's real GDP expected to grow by 0.5 per cent in 2025.
The Conference Board (TCB) Leading Economic Index (LEI) for Germany increased by 0.8 per cent in May 2025 to 87.7, more than reversing a decline of 0.3 per cent in April. Over the six-month period from November 2024 to May 2025, the LEI for Germany grew by 0.6 per cent, a partial recovery from the 0.8 per cent contraction over the previous six-month period, from May to November 2024.

The Conference Board Coincident Economic Index (CEI) for Germany was unchanged in May 2025 at 103.6, after ticking down by 0.1 per cent in April. Over the six-month period between November 2024 and May 2025, the CEI for Germany experienced a slight 0.1 per cent increase, reversing the 0.1 per cent decline over the previous six-month period, The Conference Board said in a press release.

“In May, the LEI for Germany registered its strongest monthly increase in 5 years,” said Allen Li, associate economist at The Conference Board. “Stock prices and consumer confidence, which pulled back in April, rebounded following easing trade tensions from the temporary pause on US tariffs. In addition, new orders for investment goods made a significant positive contribution, most likely supported by the announced fiscal stimulus plan. The LEI annual rate has improved continuously since the beginning of 2024, suggesting lessened headwinds to economic growth ahead. The Conference Board currently projects a mild recovery in Germany with real GDP reaching 0.5 per cent in 2025, after contracting slightly in the past two years.”

ALCHEMPro News Desk (SG)

Get Free Weekly Market Insights Newsletter

Receive daily prices and market insights straight to your inbox. Subscribe to AlchemPro Weekly!