The ZEW Indicator of Economic Sentiment for Germany shows strong growth in expectations again in the March 2025 survey. At 51.6 points, it is currently 25.6 points above the previous month’s reading. The last time the indicator increased this substantially was in January 2023. The assessment of the current economic situation remains stable. The corresponding indicator for Germany has increased marginally by 0.9 points and is now at minus 87.6 points.

„Economic expectations are improving considerably again in March, with a strongly increasing ZEW Indicator of Economic Sentiment. The brighter mood is likely due to positive signals regarding the future German fiscal policy, for example the agreement on the multi-billion-euro financial package for the federal budget. In particular, prospects for metal and steel manufacturers as well as the mechanical engineering sector have improved. Last but not least, the sixth consecutive interest rate cut by the ECB means favourable financing conditions for private households and companies,” comments ZEW President Achim Wambach, PhD on the recent results.

The financial market experts’ sentiment concerning the economic development in the Eurozone is also strongly on the rise. The indicator is up by 15.6 points and currently at 39.8 points. The assessment of the current economic situation in the monetary union remains quite stable. At minus 45.2 points it is 0.1 points above the February reading.