Economic expectations for Germany have demonstrably cooled, according to the latest survey data released Tuesday by the Centre for European Economic Research (ZEW). The ZEW’s index of economic expectations fell to 34.7 points in August 2025, representing an 18-point decrease from the previous month.
ZEW President Achim Wambach attributed the decline to disappointment surrounding the recently announced EU-US trade agreement, alongside weaker-than-anticipated economic performance in the second quarter of 2025. He noted a particular deterioration in outlook for the chemical and pharmaceutical industries, with significant impact also extending to mechanical engineering, metal production and the automotive sector.
Alongside weakened expectations, assessment of the current economic situation also worsened. The ZEW’s current conditions indicator registered at -68.6 points, a 9.1-point decrease from the previous month.
While initial growth estimates for the Eurozone in the second quarter of 2025 were comparatively stronger than those for Germany, expectations for the currency union also softened. Eurozone expectations currently stand at 25.1 points, down 11 points and assessment of the current economic situation declined to -31.2 points, falling 7 points from the prior reading.