Eurozone Investor Morale Falls More than Expected

The ZEW Indicator of Economic Sentiment for the Euro Area fell sharply by 47.9 points from the previous month to -8.5 in March 2026, the lowest in 11 months and significantly below market expectations of 24. Sentiment was heavily weighed down by the escalating conflict in the Middle East, which continues to threaten prices and supply chains across Europe. In March, 44.1% of surveyed analysts expected no change in economic activity, while 32.2% anticipated a deterioration and 23.7% foresaw an improvement. Meanwhile, the indicator of the current economic situation declined by 16.3 points to -29.9, and inflation expectations surged by 78.9 points to 79.

The ZEW Indicator of Economic Sentiment for the Euro Area fell by 1.4 points from the prior month to 39.4 in February 2026, below market expectations of 45.2. In February, about 52.6% of the surveyed analysts expected no changes in economic activity, 43.4% predicted improvement and 4% anticipated a deterioration. In the meantime, the indicator of the current economic situation increased by 4.5 points to -13.6 and inflation expectations rose by 7.7 points to 0.1.

The ZEW Indicator of Economic Sentiment for the Euro Area rose by 7.1 points from the prior month to 40.8 in January 2026, the highest since July 2024 and above market expectations of 35.2. In January, about 55.8% of the surveyed analysts expected no changes in economic activity, 42.5% predicted improvement and 1.7% anticipated a deterioration. In the meantime, the indicator of the current economic situation increased by 10.4 points to -18.1 and inflation expectations went down by 3 points to -7.6.