German investor sentiment surges on improving economic outlook
By Benjamin Chiou
Date: Tuesday 17 Jun 2025
(Sharecast News) - Investor sentiment in Germany rose much more than expected this month, as interest-rate cuts and improving government finances helped bolster confidence.
The ZEW survey, which analyses sentiment levels among analysts and institutional investors, jumped to 47.5 in June, up from 25.2 in May.
This was well ahead of the consensus forecast of 35 and a three-month high for the index.
After dropping into negative territory in April for the first time since late-2023 as Donald Trump's trade tariff barrage took effect, the ZEW confidence gauge has recovered strongly.
The index is now within a handful of points of the 51.6 mark reached in March - its highest since February 2022 - helped by improvements in German government's fiscal outlook.
The ZEW current economic situation index, while still negative, jumped by 10 points to -72, marking the biggest one-month improvement in more than two years.
Confidence levels improved strongly across the auto and chemicals/pharma sectors, along with electronics, mechanical engineering and retail, while moderate improvements were registered in banking, telecoms and IT.
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