Germany's ZEW economic sentiment falls sharply in August

15 Aug '25

1 min read

Germany's ZEW economic sentiment falls sharply in August

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Insights

Germany's ZEW Economic Sentiment fell sharply in August 2025 to 34.7 points, down 18 from July, with the current situation at minus 68.6.
Eurozone sentiment slid to 25.1, down 11, and its situation index to minus 31.2.
ZEW's Achim Wambach cited disappointment over the EU–US trade deal and weak Q2 performance, especially in chemicals and pharmaceuticals.

Germany’s ZEW Indicator of Economic Sentiment has dropped significantly in August 2025 to plus 34.7 points, down 18 points from July. The assessment of the current economic situation also weakened, with the situation indicator falling 9.1 points to minus 68.6 points.

For the eurozone, expectations slipped to plus 25.1 points, an 11-point decline from the previous month, as growth outlooks were revised down despite earlier stronger estimates compared to Germany. The eurozone’s current situation indicator also deteriorated, dropping 7 points to minus 31.2 points, ZEW said on its website.

“Financial market experts are disappointed from 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,” commented ZEW president professor Achim Wambach, PhD on the survey results.

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