ZEW sentiment indicator recovers in Germany

After a deep drop of the ZEW Indicator in April (in reaction to the Trumps announcement of tariffs), the economic sentiment in Germany seems to have recovered. In June, ZEW Indicator increased to 47.5 points from Mays value at 25.2. ZEW President Wambach underlines that recent growth in investment and consumer demand have been contributing factors to improving sentiment. This development also seems to strengthen the assessment that the fiscal policy measures announced by the new German government can provide a boost to the economy. The assessment of the current economic situation also experiences an increase with the indicator for Germany rising by 10.0 points and settling at minus 72.0 points in June. This is the strongest increase observed in the indicator since April 2023. According to the statement, however, the value continues to be the lowest reading among the countries analyzed and in the eurozone. Recovery of market sentiment in Germany is a positive signal for the CEE developments.