German Investor Morale Falls More than Expected
2025-08-12 09:08
By
Joana Taborda
1 min. read
The ZEW Indicator of Economic Sentiment for Germany decreased for the first time in four months to 34.7 in August 2025, compared to 52.7 in July which was the highest since 2022 and below forecasts of 40.
“Financial market experts are disappointed with the announced EU–US trade deal.
In August 2025, the ZEW indicator experiences a substantial decline, also due to the poor performance of the German economy in the second quarter of 2025.
The outlook has worsened in particular for the chemical and pharmaceutical industries.
The mechanical engineering and metal sectors as well as the automotive industry are also severely affected,” ZEW President Professor Achim Wambach said.
Meanwhile, the assessment of the current economic situation has also deteriorated, with the Current Conditions index declining to -68.6 from -59.5 and worse than forecasts of -65.