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Germany ZEW sentiment climbs in August as current conditions improve

ZEW’s Current Situation Index rose from -77.6 to -61.1 in August, even as the survey still pointed to record-low Rhine water levels as a risk.

Reported · Written up by our desk · Major Pairs

German investor sentiment strengthened further in August, with the ZEW Economic Sentiment gauge rising from 26.3 to 34.2, topping 30.1 consensus.

The ZEW Current Situation Index also improved sharply, moving from -77.6 to -61.1, which was well above the -68.8 expected level, though it remained deeply negative.

ZEW linked the improvement to solid quarterly corporate results, strong recent exports, and support from federal infrastructure programs. The gain was broad across sectors, including a 22.2 point jump in vehicle-industry expectations, and stronger moves in chemicals and pharmaceuticals, mechanical engineering, and metals.

For the eurozone, Economic Sentiment increased from 23.4 to 31.4 and the Current Situation assessment improved by 16.2 points to -21.5, but ZEW flagged record-low Rhine water levels as an acute risk to activity.

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