Economic expectations in Germany deteriorated slightly, while the eurozone economic sentiment index rose in November

By: Trademagazin Date: 2025. 11. 11. 10:20

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In November, the ZEW economic sentiment index for Germany deteriorated slightly, while the sentiment indicator reflecting economic expectations in the euro area improved compared to the previous month.

The ZEW – Leibniz Centre for European Economic Research’s six-monthly German economic sentiment index (ZEW Indicator of Economic Sentiment) fell to plus 38.5 points in November, after rising to plus 39.3 points in October, the highest since July this year.

Analysts, on the other hand, had expected an increase of plus 40.0 They expected an accurate November figure.

The six-month-ahead German economic sentiment indicator returned to positive territory in November last year, after fluctuating in negative territory for six months, then falling back into negative territory in April due to uncertainty surrounding US trade policy measures, but has been in positive territory since May. In July this year, the indicator rose to plus 52.7 points, the highest since February 2022.

However, the assessment of the current conditions of the economic environment by German business operators included in the survey improved slightly in November, with the indicator increasing from minus 80.0 points in the previous month, the lowest level since May, to minus 78.7 points, while experts had expected a more significant improvement of minus 77.5 points.

The ZEW economic sentiment indicator for the euro area, looking ahead six months, strengthened in November: plus 25.0 points rose after falling to minus 22.7 points in October, a five-month low. Analysts had expected a smaller improvement of plus 23.5 points.

The eurozone indicator of the current economic situation also improved, rising by 4.5 points on a monthly basis to minus 27.3 points in November.

Achim Wambach, president of ZEW, highlighted in his commentary on the results that the ZEW economic sentiment index for Germany, which looks ahead six months, has remained virtually unchanged, but the general mood is characterized by a decline in confidence in the German government’s ability to handle economic policy problems. Although the investment program is likely to have a stimulating effect on the economy, structural problems remain.

In Germany, the outlook for the chemicals and metals industries, as well as the banking and insurance sectors, deteriorated compared to the previous month, while it improved for the electrical engineering, telecommunications and IT sectors, and the services sector.

The Mannheim-based ZEW Institute for Economic Research has been conducting its survey monthly since 1991. Financial analysts from the approximately 350 banks, insurance companies and large industrial companies surveyed can rate it in a range of minus 100 to plus 100 points.