The ZEW Institute for Economic Research announced today that its investor confidence index in Germany increased by 39.3 points in May compared to the previous month, reaching 25.2 points.
Meanwhile, the assessment of the current situation in Germany declined by 0.8 points to -82 points in May relative to April.
“The formation of a new government, movements in tariff disputes, and the stabilization of the inflation rate contributed to the increased optimism,” stated Achim Wambach, President of ZEW.
Confidence improved in almost all sectors in the May survey, particularly in prospects for the banking sector and export-oriented industries such as automotive, chemical, metal, machinery, and steel industries.
The reduction in interest rates by the European Central Bank (ECB) contributed to an improved outlook for the construction sector.
Financial market experts’ expectations regarding the eurozone economy also improved significantly in May, as did the situation assessment, albeit to a lesser extent.
