German ZEW Economic Confidence Improves

(RTTNews) - German economic confidence unexpectedly improved in May as financial experts anticipate an end to the Iran war, survey results from the Mannheim-based Centre for European Economic Research, or ZEW, showed Tuesday.

The ZEW indicator of economic sentiment rose to -10.2 in May from -17.2 in the previous month. The score was forecast to fall to -19.1. However, the index has remained negative for the third straight month.

Although financial market experts are hoping that the Iran war will end soon, weak industrial production, rising energy prices and an inflation rate that exceeds the two-per-cent mark continue to burden the German economy, ZEW President Achim Wambach said.

"There is cautious hope for a potential recovery in the second half of 2026, provided that the Middle East conflict eases and the government's economic stimulus measures are having an effect," said Wambach.

The current situation assessment weakened in May. The situation indicator dropped 4.1 points to -77.8 in May.

The survey showed that economic sentiment in the euro area strengthened notably in May. The economic confidence index rose 11.3 points to -9.1 in May. Current situation improved slightly with the index rising 1.6 points to -41.4.