The ZEW Indicator of Economic Sentiment for Germany rose +2.0 pts to 39.3 (vs 40.5 expected) in October 2025, showing modest improvement in expectations, while assessments of the current situation continued to worsen.

• The Current Situation Index for Germany fell -3.6 pts to -80.0 (vs -75.0 expected), extending its downward trend and signaling persistent weakness in present conditions.

• The ZEW noted that experts “still hope for an upturn in the medium term,” despite uncertainty surrounding global demand and domestic investment policy.

• Expectations improved notably for export-oriented industries such as metal production, pharmaceuticals, mechanical engineering, and electrical equipment, though the automotive sector saw a slight decline.

• For the euro area, the expectations index dropped -3.4 pts to 22.7, while the Current Situation Index fell -3.0 pts to -31.8, reflecting renewed pressure from the ongoing budget dispute in France.