The Centre for European Economic Research (ZEW) reported on Tuesday from Mannheim that the German economic expectations survey for April 2026 showed a further decline. Expectations fell by 16.7 points, reaching -17.2 points. Furthermore, the assessment of the current economic situation also declined, with Germany’s situation indicator dropping by 10.8 points and now standing at -73.7 points.
ZEW President Achim Wambach noted that “expectations are turning negative”. He suggested that the economic impact of the Iran conflict on Germany’s economy extends beyond rising prices. Specifically, concerns about a prolonged shortage of energy supplies are curbing investments and diminishing the effectiveness of state-sponsored stimuli.
The industry-specific outlooks remain heavily influenced by the conflict in Iran. While the automotive sector shows relative stability (with a balance of -44.2 points), the prospects for the chemical and pharmaceutical industries have noticeably worsened (-11 points compared to March), as have those for steel and metal production (-21 points compared to March). Moreover, construction sector expectations dipped into negative territory by 3.8 points.
Expectations for the Eurozone also experienced a sharp fall in April. The index was 11.9 points lower than in March, standing at a balance of -20.4 points. The perception of the overall situation declined significantly, dropping by 13.1 points to reach -43 points.