Germany’s ZEW Economic Sentiment Index fell to 34.7 in August from 52.7 in July, missing the forecast of 39.5. This is the third month in a row it has dropped and the biggest one-month fall since 2022.
“Germany’s ZEW Economic Sentiment Index fell to 34.7 in August from 52.7 in July, missing the market forecast of 40.” https://www.fxstreet.com/news/german-zew-economic-sentiment-index-drops-to-347-in-august-vs-40-expected-202508120901
The Current Situation Index dropped even more, falling to minus 68.6 from minus 59.5, below what was expected. The ZEW said many people are unhappy with the EU–US trade deal and the weak GDP numbers from the second quarter. Germany’s economy shrank by 0.1% in that quarter, reversing the 0.3% growth it had in the first quarter.
“The economic sentiment index fell to 34.7 points from 52.7 points in July The assessment of the current economic situation also deteriorated significantly with the indicator falling to minus 68.6 from minus 59.5.” https://www.msn.com/en-gb/money/economy/german-investor-morale-falls-more-than-expected-in-august-zew-finds/ar-AA1KmF8U
ZEW President Achim Wambach said the outlook has gotten worse for chemicals, pharma, autos, machinery, and metals. The EU–US trade deal added a 15% tariff on most EU goods, causing sudden drops in demand and hurting these sectors.
“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.” https://www.finanznachrichten.de/nachrichten-2025-08/66156858-german-zew-economic-confidence-deteriorates-on-trade-deal-020.htm
Expectations for the eurozone also dropped, with the ZEW index falling to 25.1 from 36.1. This shows that worries are spreading across Europe, with Germany leading the way down.
Germany’s ZEW economic sentiment fell to 34.7 in Aug from 52.7 in July (highest since 2022), missing 40 forecast.
ZEW cites disappointment over the EU–US trade deal and weak Q2 data, with outlook worsening for chemicals, pharma, autos, machinery, and metals. Current conditions… pic.twitter.com/wED8P1pwrS
— Ayesha Tariq, CFA (@AyeshaTariq) August 12, 2025
“These expectations have also been revised downwards for the monetary union and are currently at plus 25.1 points minus 11.0 points below the previous month’s reading.” https://www.zew.de/en/press/latest-press-releases/subdued-economic-outlook-following-the-announced-eu-us-trade-deal
UK Unemployment rate holds steady at 4.7% but still the highest since 2017, outside of the pandemic shock. pic.twitter.com/KQ5n3zNm00
— Ayesha Tariq, CFA (@AyeshaTariq) August 12, 2025