| Consensus | Consensus Range | Actual | Previous | |
| Current Conditions | -67.5 | -73.7 to -64.0 | -65.9 | -72.7 |
| Economic Sentiment | 65 | 57 to 65 | 58.3 | 59.6 |
Highlights
Germany's latest survey signals an economy shifting from contraction anxiety to cautious stabilisation. Expectations eased slightly to 58.3, but the marginal dip suggests consolidation rather than reversal. More telling is the 6.8-point rise in the current-conditions indicator to minus 65.9, implying that sentiment is gradually catching up with improving real-economy signals, suggestive that recovery is underway but structurally fragile, an expansion phase constrained by industrial headwinds and subdued private investment.
Sectoral dynamics reinforce this interpretation. Export-led industries such as chemicals, metals, and machinery posted notable expectation gains, consistent with stronger-than-anticipated late-2025 order books. This suggests external demand is acting as the primary stabiliser. Consumption sentiment is also edging upward, hinting at domestic resilience. However, declines in expectations for finance and IT indicate uneven recovery across knowledge-intensive sectors, signalling that structural adjustment is still in progress.
Across the eurozone, stability rather than acceleration defines the outlook. Expectations remain broadly flat while current-conditions assessments improve modestly. Overall, the latest data suggests a rebound driven by exports, while lingering structural constraints will likely determine whether stabilisation evolves into sustained growth. These updates take the RPI to 8 and the RPI-P to 9, meaning that economic activities are now within the expectations of the German economy.
Market Consensus Before Announcement
Sentiment expected to continue recovering with current conditions up to minus 67.5 from minus 72.7 in January.
Definition
The Mannheim-based Centre for European Economic Research (ZEW), asks German financial experts every month for their opinions on current economic conditions and the economic outlook for Germany (as well as other major industrial economies). The responses are synthesised into two simple indices that provide a snapshot of how the economy is seen to be performing.
Description
The ZEW Indicator of Economic Sentiment is calculated from the results of the ZEW Financial Market Survey. The ZEW is followed closely as a precursor and predictor of the Ifo Sentiment Survey and as such is followed closely by market participants. The data are available around mid-month for the current month. The survey provides a measure of analysts' view of current economic conditions as well as a gauge of expectations about the coming six months. The latter measure tends to have the larger market impact and reflects the difference between the share of analysts that are optimistic and the share of analysts that are pessimistic. About 350 financial experts take part in the survey.