Subdued Economic Sentiment in Germany following EU–US Trade Deal Disappointment

In August 2025, the ZEW Indicator of Economic Sentiment in Germany dropped sharply to 34.7 points, a decline of 18 points from the previous month, reflecting disappointment among financial market experts following the EU–US trade deal. The economic situation also deteriorated, with the situation indicator falling to minus 68.6 points. Key sectors affected include chemicals, pharmaceuticals, mechanical engineering, metal, and automotive. The eurozone outlook is more positive at 25.1 points, but still 11 points lower than the previous month, with the situation indicator at minus 31.2 points, signaling broadly subdued sentiment. These figures highlight ongoing uncertainty and challenges for Germany and the eurozone, particularly in industrial sectors. Read the full report on the ZEW website.