The ZEW economic outlook for Germany showed a strong improvement in the June 2026 survey. According to the Center for European Economic Research (ZEW) in Mannheim on Tuesday, expectations rose by 20.7 points, reaching 10.5. In contrast, the assessment of the current economic situation saw a slight decline, with the current situation indicator for Germany dropping 3.2 points to 81 points.
ZEW President Achim Wambach commented on the current figures, noting that “the ZEW index is returning to positive territory.” The experts attributed this sentiment shift to the nearing end of the Iran conflict. He suggested that the intense pressure on energy prices and inflation is set to ease. This reduction, he explained, would benefit energy-intensive industries and private households, ultimately strengthening domestic demand.
The boosted expectations are reflected across individual sectors. The auto industry, which had experienced several setbacks in recent months, saw its balance improve by 21.9 points. Significant gains were also registered in the chemical and pharmaceutical industries, with increases of 16 points and 9.2 points, respectively, alongside a sharp rise in the mechanical engineering sector. Expectations for private consumption improved by 11.7 points compared to the previous month.
However, despite these strong increases, the balances for these sectors remain in a negative range. Construction showed a decline in June, with the balance falling by 15.2 points to a value of -12. This development is partly attributed, according to the source, to the ECB’s recent interest rate hike on June 11.
Meanwhile, expectations for the Eurozone saw a substantial increase in June. The index posted a balance of 9.5 points, a rise of 18.6 points from May. The assessment of the overall situation, however, remained negative, dropping 2.0 points to 43.4 points compared to the previous month.
