German Investor Morale Continues to Improve in June

The ZEW Indicator of Economic Sentiment for Germany surged by 22.3 points to 47.5 in June 2025, marking its highest level since March’s three-year peak of 51.6 and far exceeding market expectations of 35.

Optimism continued to grow, supported by a recent uptick in investment and consumer demand, amid the belief that fiscal measures from the new German government, combined with recent ECB rate cuts, may signal the end of nearly three years of economic stagnation in Europe’s largest economy.

Additionally, the current economic conditions index improved by 10.0 points to -72.0, the sharpest increase in this measure since April 2023.