The economic expectations survey released by the Centre for European Economic Research (ZEW) in Mannheim shows new improvements in Germany’s economic outlook for August 2026. The forward-looking expectation index rose by 7.9 points to 34.2, compared to the previous month’s figures. Furthermore, the assessment of the current economic situation saw a sharp increase, with Germany’s situation indicator improving by 16.5 points to stand at -61.1.
ZEW President Achim Wambach commented on the results, noting, “The positive trend in expectations is confirmed in August.” This surge is attributed to strong quarterly results and a recent high in exports. While he highlighted that the German economy continues to benefit from the government’s infrastructure programs, he cautioned that the record low water levels in the Rhine currently pose an acute, additional risk to the economy in the short term.
The improvement in expectations is evident across all industries. The outlook for the automotive sector, in particular, saw a significant rise of 22.2 points, although the balance remains negative. The chemical and pharmaceutical industries, as well as machine engineering and metal production, also reported substantial increases in expectations. Expectations for private consumption increased again by 9.0 points, reaching -6.2 points. The construction sector improved by 1.4 points, now scoring 2.1 points.
Expectations for the Eurozone also climbed in August. The index increased by 8.0 points, reaching a balance of 31.4. While the assessment of the Eurozone’s current situation improved considerably by 16.2 points, it still remains in negative territory at -21.5 points.
