Economic expectations improved in both Germany and the euro area in January

The ZEW – Leibniz Centre for European Economic Research’s six-monthly German economic sentiment index (ZEW Indicator of Economic Sentiment) rose to plus 59.6 points, the highest level since September 2022, from plus 45.8 points in December.

The average of analysts’ expectations included a less improving indicator of 50 points for January.

Achim Wambach, president of ZEW, said in relation to the data that “the ZEW index is rising strongly, 2026 could be a turning point.”

The ZEW six-month economic sentiment indicator for the eurozone strengthened in January: it rose to 40.8 points, the highest level since July 2024, from 33.7 points in December. Analysts had expected a more moderate improvement in the index, to 36.7 points, for January.

The eurozone indicator of the current economic situation improved from minus 28.5 points in December to minus 18.1 points in January.

The Mannheim-based ZEW economic research institute has been conducting its survey on a monthly basis since 1991. Financial analysts from the approximately 350 banks, insurance companies and large industrial companies surveyed can rate it in a range between minus 100 and plus 100 points.