The Centre for European Economic Research (ZEW) reported a further improvement in the ZEW indicator of economic expectations for Germany in its July 2025 survey. The index rose to +52.7 points, a 5.2-point increase from the previous month, according to a statement released Tuesday from Mannheim.
“Following the significant increases observed in the past two months, the positive sentiment among those surveyed is now solidifying” commented ZEW President Achim Wambach regarding the latest results. Despite ongoing uncertainty surrounding global trade conflicts, nearly two-thirds of experts anticipate a positive development in the German economy.
The prevailing outlook appears to be driven by optimism regarding a potential resolution to the US-EU trade dispute, as well as anticipated economic stimulus from a planned investment acceleration program by the German government. This increased optimism is particularly reflected in substantially improved expectations for the engineering and metal production sectors, followed by the electrical industry, according to Wambach.
The assessment of the current economic situation also experienced a significant rise, with the indicator for Germany increasing by 12.5 points to reach -59.5 points.
Meanwhile, economic expectations for the Eurozone remained stable in July, currently standing at 36.1, a slight increase of 0.8 points above the previous month’s value. The assessment of the economic situation within the currency union also improved, albeit to a lesser degree than the increase seen in Germany, reaching -24.2 points, reflecting a rise of 6.5 points from the prior month.
