The ZEW Indicator of Economic Sentiment for Germany rebounded significantly in May following a sharp decline in April 2025, rising to 25.2 points\u2014an increase of 39.2 points from the previous month\u2014placing it firmly in positive range.<\/p>\n
Meanwhile, the assessment of the current economic situation remained largely unchanged, with the German indicator dipping slightly by 0.8 points to minus 82, still the lowest among all countries surveyed and within the eurozone, as per a report by ZEW.<\/p>\n
\u201cExpectations are brightening. The ZEW indicator sees a major improvement in May 2025 and compensates for part of the losses observed in the April survey. With a new government in place, some progress in the tariff disputes and a stabilising inflation rate, optimism has increased,\u201d said professor Achim Wambach, president at ZEW and PhD on the survey results<\/strong>.<\/p>\n Germany’s ZEW Economic Sentiment Index rebounded to 25.2 in May 2025, up 39.2 points from April, reflecting growing optimism amid easing inflation, a new government, and tariff progress.
In almost all industries, sentiment has improved in the May survey. The outlook has improved for the banking industry and export-intensive sectors such as the automobile and chemical industries, as well as metal, machine and steel production.<\/p>\n The most recent interest rate cut by the European Central Bank (ECB) and anticipated future rate cuts have a positive effect particularly for the construction industry. The respondents also expect domestic demand, which has been subdued lately, to pick up on a six-month horizon and boost the German economy, which is currently stagnating, added the report.<\/p>\n The sentiment concerning the economic development in the eurozone is strongly on the rise as well: increasing by plus 30.1 points, it is currently at 11.6 points and thus in the positive range. The assessment of the current economic situation in the monetary union has also improved, albeit less markedly. At minus 42.4 points it is plus 8.5 points above the April reading.<\/p>\n
<\/p>\n Fibre2Fashion News Desk (SG)<\/p>\n
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\nHowever, the current situation remains weak at -82.
\nSentiment improved across industries.
\nEurozone sentiment also rose, with its outlook climbing to 11.6 and current assessment improving to -42.4. <\/p>\n