The ZEW Indicator of Economic Sentiment for Germany rose 5.2 pts to 52.7 in July 2025, continuing its upward trend and reflecting firming optimism despite global trade uncertainties.

• The Current Situation Index for Germany rose 12.5 pts to -59.5, still negative but improving.
• Sentiment in the eurozone rose 0.8 pts to 36.1, while the eurozone Current Situation Index increased 6.5 pts to -24.2.
• ZEW attributes rising optimism to easing US-EU trade tensions and Germany’s planned investment stimulus.
• Sector-specific sentiment improved notably in mechanical engineering, metal production, and the electrical industry.