The Center for European Economic Research (ZEW) reported a continued recovery in German economic sentiment for July 2025, according to its latest survey released Tuesday from Mannheim. The ZEW Indicator of Economic Expectation rose to +52.7 points, a significant increase of 5.2 points from the previous month.
“Following the substantial improvements observed in the past two months, the positive sentiment among those surveyed is now consolidating” commented ZEW President Achim Wambach. Despite ongoing uncertainties related to global trade tensions, nearly two-thirds of experts anticipate a positive development in the German economy.
The prevailing optimism appears to be driven by hopes for a swift resolution to the US-EU tariff dispute and potential economic stimulus from a planned investment acceleration program by the German government. This heightened optimism is particularly evident in expectations for the engineering and metal production sectors, followed by the electrical industry, according to Wambach.
The assessment of the current economic situation also saw a substantial increase, with the German situation indicator climbing 12.5 points to reach -59.5 points.
Meanwhile, economic expectations for the Eurozone remained stable in July, increasing marginally by 0.8 points to reach 36.1. The assessment of the current economic situation within the currency union also improved, though less significantly than the increase observed in Germany, standing at -24.2 points, up 6.5 points from the previous month.