Financial News: German Economic Sentiment Strengthens In June

German Economic Sentiment Strengthens In June

06/17/2025 - 07:14:00 (RTTNews)

(RTTNews) - Investor confidence in Germany improved more than expected in June underpinned by rising consumer demand and spending plans of the new government, a monthly survey conducted by the think tank ZEW showed on Tuesday.

The ZEW Indicator of Economic Sentiment surged to a three-month high of 47.5 in June from 25.2 in the previous month. The score was seen at 34.8. The assessment of the current situation also strengthened the most since April 2023. The corresponding index rose to -72.0 from -82.0 in the previous month.

"Recent growth in investment and consumer demand have been contributing factors," ZEW President Achim Wambach said.

"This development also seems to strengthen the assessment that the fiscal policy measures announced by the new German government can provide a boost to the economy," Wambach added.

Together with the recent interest rate reductions by the European Central Bank, this could bring an end to the economic stagnation in Germany, which has lasted for almost three years, Wambach said.

Regarding developments in the euro area, the ZEW survey showed a substantial improvement in the economic sentiment. The economic sentiment index advanced to 35.3 from 11.6 in May. The reading was well above the forecast of 23.5.

The assessment of the current economic situation also improved in the monetary union. At -30.7, the indicator was plus 11.7 points above the reading of May.

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