The ZEW Indicator of Economic Sentiment for Germany fell -18.0 pts to 34.7 in August 2025, ending several months of gains, as experts reacted negatively to the announced EU–US trade deal and weak Q2 performance.

• The Current Situation Index for Germany dropped -9.1 pts to -68.6, while the eurozone index fell -7.0 pts to -31.2.
• Eurozone sentiment declined -11.0 pts to 25.1, reflecting downgraded growth expectations despite earlier positive Q2 estimates.
• Outlook worsened most for chemicals, pharmaceuticals, mechanical engineering, metals, and automotive industries.
• The expectations index for the US eased -7.0 pts to -41.2, while for China slipped just -0.3 pts to 3.9.
• Inflation expectations stayed negative in the eurozone (-6.7) and Germany (-5.1), while a net 74.5% of respondents expect the US to see higher inflation.