Latest News Stream - Zew Economic Sentiment Index

The ZEW Indicator of Economic Sentiment for the Euro Area fell by 7.3 points to 18.5 in October 2026, reaching its lowest level in four months and falling short of market expectations of 23.6. The decline points to weakening investor confidence amid continued uncertainty over the Iran conflict and limited prospects for a resolution. Survey results showed that 67.1% of analysts expected economic activity to remain unchanged over the coming months, while 25.7% anticipated an improvement and 7.2% forecast a deterioration. Assessments of current economic conditions also weakened, with the corresponding index slipping 0.9 points to -14.8. Meanwhile, inflation expectations fell sharply, dropping 26.4 points to 4.7.

Swiss investor sentiment weakened sharply in September, with the UBS-CFA Society Switzerland indicator falling 9.5 points to 2.6, its lowest level in three months. The survey nevertheless showed that analysts continue to view the underlying condition of the Swiss economy positively, although concerns over inflation have increased. UBS said the share of respondents identifying inflation as the most significant risk rose to around 22%, the highest reading since 2024. The deterioration in expectations contrasts with an improvement in assessments of current economic conditions. The Current Conditions Gauge climbed to 17.9 in September from 8.8 in August, suggesting that investors’ perception of the economy’s present performance strengthened even as their outlook became more cautious.

The ZEW Indicator of Economic Sentiment for the Euro Area eased to 25.8 in September 2026 from a six-month high of 31.4 in August, while analysts had expected a further improvement to 39.9. In September, 54.8% of the surveyed analysts expected no change in economic activity, while 35.5% anticipated an improvement and 9.7% expected deterioration. The assessment of the current situation improved, with the index rising 7.6 points to -13.9, while inflation expectations climbed 28.7 points to 31.1.

The Swiss investors’ sentiment index rose to 12.1 in August 2026 from 10.0 in the previous month, according to the UBS & CFA Society Switzerland survey. The reading marked the second consecutive month in positive territory since the outbreak of the Middle East conflict and the second-highest level since January 2025. Meanwhile, the share of analysts expecting Switzerland’s economic conditions to remain unchanged over the next six months fell by roughly half, as both more optimistic and more pessimistic views gained traction. The current conditions gauge also improved to 8.8 from 6.7 in July, pointing to a further improvement in assessments of the country’s current economic environment.

The ZEW Indicator of Economic Sentiment for the Euro Area rose further to 31.4 in August 2026, the highest in six months and beating market expectations of 25.4. This marked the third consecutive month of improvement in sentiment across the bloc. In August, 57% of analysts expected no change in economic activity, while 37.2% anticipated an improvement and 5.8% expected deterioration. The assessment of the current situation also improved, with the index surging 16.2 points to -21.5, while inflation expectations declined 8 points to 2.4.

The ZEW Indicator of Economic Sentiment for the Euro Area rose by 13.9 points to 23.4 in July 2026, the highest in five months and beating market expectations of 11.2. The uptick suggests sentiment is improving, as markets continue to price in hopes of a resolution to the Iran conflict. In July, 64% of analysts expected no change in economic activity, while 29.7% anticipated an improvement and 6.3% expected deterioration. The assessment of the current situation also improved, with the index rising 5.7 points to -37.7, while inflation expectations dropped 35.4 points to 10.4.

Swiss investor sentiment deteriorated to -25.0 in June 2026 from -11.1 in May, remaining firmly in negative territory, according to the UBS & CFA Society Switzerland survey. The expectations index declined by 13.9 points on the month, partially reversing the improvement recorded over the previous two months as confidence weakened following the recovery from the downturn triggered by the Middle East conflict. Despite the weaker near-term outlook, UBS noted that expectations for long-term economic growth and inflation remained broadly unchanged from those reported in March. Meanwhile, assessments of current economic conditions improved, with the current conditions gauge rising to +2.8 in June from -2.8 in May.

The ZEW Indicator of Economic Sentiment for the Euro Area climbed by 18.6 points from the prior month to 9.5 in June 2026, way better than market forecasts of -7.2. The improvement was underpinned by hopes of a resolution to the Middle East conflict, which should alleviate pressure on energy prices and inflation. In June, 57.7% of analysts expected no change in economic activity, while 25.9% anticipated improvement and 16.4% expected deterioration. The index measuring inflation expectations declined by 19.5 points to 45.8. Meanwhile, the assessment of the current situation was less favorable, with the index falling by 2 points to -43.4.

Swiss investor sentiment improved to -11.1 in May 2026 from -30.3 in May 2025, according to the UBS & CFA Society Switzerland survey. The index rose by 19.2 points on the month, reflecting a less pessimistic outlook compared with previous readings, although it remains in negative territory. Around 75% of analysts now expect economic conditions in Switzerland to remain unchanged over the next six months. UBS noted that inflation expectations remain elevated, particularly outside Switzerland, despite the more stable domestic outlook. The current conditions gauge stood at +9.1 in May, while expectations were at -2.8.

The ZEW Indicator of Economic Sentiment for the Euro Area rose by 11.3 points to -9.1 in May 2026, beating market expectations of -20. The uptick suggests sentiment is improving, as markets continue to price in hopes of a quick resolution to the Iran conflict. In May, 51.1% of analysts expected no change in economic activity, while 29% anticipated a deterioration and 19.9% expected improvement. The assessment of the current situation also improved, with the index rising 1.6 points to -41.4, while inflation expectations dropped 13.7 points to 65.3.

Swiss investor sentiment rose to -30.3 in April 2026, up from a six-month low of -35.0 in March, according to the UBS & CFA Society Switzerland survey. Over half of respondents expect the Swiss economic outlook to remain largely unchanged over the next six months, while slightly more than a third foresee a deterioration. UBS noted a rise in expectations for Swiss franc appreciation, while GDP and inflation forecasts for 2026/27 remained steady. The current conditions gauge also improved, climbing to +9.1 in April from +2.5 in March.

Germany’s ZEW Indicator of Economic Sentiment plunged by 16.7 points to -17.2 in April 2026, marking its lowest level since December 2022 and falling far short of market expectations of -5. The sharp decline, following March’s third-largest monthly drop in the indicator’s history, reflects deepening pessimism as the escalating Middle East conflict weighs on Germany’s economic outlook. ZEW President Prof. Achim Wambach warned that the Iran war’s impact extends beyond rising prices, with fears of long-term energy shortages dampening investment and undermining government stimulus efforts. Sectoral expectations remain heavily affected: while the automotive industry stayed relatively stable (at -44.2), outlook for the chemical and pharmaceutical sectors (down 11 points) and steel and metal production (down 21 points) deteriorated sharply. Meanwhile, construction sector expectations slipped into negative territory, declining by 3.8 points.