The ZEW Indicator of Economic Sentiment for Germany rose +2.6 pts to 37.3 in September 2025, stabilising after August’s sharp decline, though the assessment of the current economic situation continued to weaken.

• The Current Situation Index for Germany dropped -7.8 pts to -76.4, marking a further deterioration in conditions.

• For the euro area, economic expectations improved slightly to 26.1 (+1.0 pts), while the current situation assessment rose modestly to -28.8 (+2.4 pts).

• In the US, expectations strengthened to -30.2 (+11.6 pts), but the current situation balance remained weak at -33.8 (-7.4 pts).

• For China, expectations edged up to 6.2 (+2.3 pts), while the current situation stayed firmly negative at -32.8 (+7.9 pts).

• Inflation expectations stayed subdued in Europe, with the euro area at -3.4 (+3.3 pts) and Germany at -6.8 (+3.3 pts), while the US recorded a strong positive balance of +69.5 (+4.3 pts).

• Short-term interest rate expectations were mostly negative, with balances of -22.6 for the euro area, -73.3 for the US, and -24.1 for China.

• Long-term rate expectations diverged, with Germany (+37.3), the euro area (+34.0), and the US (+30.4) all positive, while China’s balance was more muted at +5.7.