Germany’s ZEW Indicator of Economic Sentiment edged down -0.8 pts to +38.5 in November 2025, remaining broadly stable and signaling cautious optimism, while the Current Situation Index rose slightly by +1.3 pts to -78.7.

• ZEW noted that confidence in Germany’s economic policy has weakened, with structural challenges continuing to weigh despite potential support from new investment programs.

• Outlooks in the chemical and metal sectors worsened, and the banking and insurance industries also reported declines compared with October.

• Sentiment improved for private consumption (+13.3 pts) and rebounded modestly in electrical engineering, telecommunications, IT, and services, though earnings expectations remain lower overall.

• For the euro area, the expectations index rose +2.3 pts to +25.0, while the Current Situation Index increased +4.5 pts to -27.3, suggesting mild improvement in the regional outlook.