Eurozone Investor Morale Improves to 18-Month High

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.

The ZEW Indicator of Economic Sentiment for the Euro Area climbed by 8.7 points from the prior month to 33.7 in December 2025, the highest reading in five months. Figures came above market forecasts of 26.3. In December, about 57.1% of the surveyed analysts expected no changes in economic activity, 38.3% predicted improvement and 4.6% anticipated a deterioration. In the meantime, the indicator of the current economic situation fell by 1.2 points to -28.5 and inflation expectations went down by 1.9 points to -4.6.

The ZEW Indicator of Economic Sentiment for the Euro Area rose by 2.3 points from the prior month to 25 in November 2025, above market estimates of 23.5. In November, about 62% of the surveyed analysts expected no changes in economic activity, 31.5% predicted improvement and 6.5% anticipated a deterioration. In the meantime, the indicator of the current economic situation increased by 4.5 points to -27.3 and inflation expectations went down by 4.4 points to -2.7.