Germany’s ZEW Economic Sentiment fell -1.3 pts MoM to 58.3 in February, while the current conditions gauge improved, indicating stabilising expectations amid gradual recovery.

• Germany current situation index rose +6.8 pts MoM to -65.9, showing the assessment of present economic conditions remains negative but continues to improve month to month.

• Export-oriented industries recorded notable gains: chemicals/pharma +7.5 pts, steel/metal +8.6 pts, and mechanical engineering +10.9 pts, which the survey linked to stronger-than-expected incoming orders late in 2025.

• Expectations for private consumption increased +6.0 pts, pointing to a modest improvement in household outlook despite ongoing uncertainty.

• Sentiment weakened in banks, insurance, and information technology sectors, highlighting divergence across industries rather than a uniform improvement.

• Eurozone expectations were 39.4 (-1.4 pts MoM), suggesting the broader regional outlook remained largely steady compared with the prior month.

• Eurozone current conditions rose +4.5 pts to -13.6, indicating the present situation is still negative but improving similarly to Germany’s trend.

• ZEW described the recovery as fragile and emphasized structural challenges, particularly in industry and private investment, even as sentiment stabilises.