Financial News: German Economic Sentiment Strengthens In July

German Economic Sentiment Strengthens In July

07/15/2025 - 05:55:00 (RTTNews)

(RTTNews) - German economic sentiment improved more than expected in July on hopes of a quick resolution to the US-EU tariff dispute and potential stimulus from the federal government, a monthly survey conducted by the think tank ZEW showed on Tuesday.

The ZEW Indicator of Economic Sentiment rose to 52.7 in July from 47.5 in the previous month. The reading was also above forecast of 50.8.

Similarly, the current situation index climbed sharply to -59.5 from -72.0 in the prior month. The score was seen at -65.5.

"Despite ongoing uncertainty due to global trade conflicts, nearly two-thirds of the experts expect the German economy to improve," ZEW President Achim Wambach said.

"Hopes for a quick resolution to the US-EU tariff dispute, along with potential economic stimulus from the German government's planned immediate investment programme, appear to be shaping overall sentiment," Wambach added.

The survey showed that increased optimism is particularly reflected in significantly improved expectations for mechanical engineering and metal production, followed by the electrical industry.

Economic confidence in the euro area also strengthened substantially in July. The economic sentiment index climbed 0.8 points to 36.1 in July and was above economists' forecast of 37.8.

The assessment of the current economic situation also improved in July but not as strongly as seen in Germany. At -24.2, the current situation index rose from -30.7 in June.

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