German investor sentiment improved in December – ZEW

German investor sentiment improved more than expected in December, according to the ZEW Institute for Economic Research.

The corresponding index rose to 45.8 points in December, compared to 38.5 in the previous month.

At the same time, assessments of the current economic situation deteriorated slightly. The indicator for Germany is minus 81 points, which is 2.3 points worse than the value recorded in November.

According to ZEW President Achim Wambach, expectations have become more positive. The mood reflects the fact that the chances of a recovery in the German economy after three years are good.

“Expansionary fiscal policy will give new impetus to the German economy. However, the recovery remains fragile. Measures to resolve ongoing trade conflicts, geopolitical tensions, and lack of investment are also likely to be included in the 2026 reform agenda,” he explained.

According to the ZEW survey, the situation in the automotive industry has improved, with the index rising by 7.7 points to minus 22. Other export-oriented sectors, such as the chemical and pharmaceutical industries and metallurgy, are also showing growth, albeit less pronounced. Despite favorable fiscal policy, these industries still suffer from low export volumes due to high tariffs and competitive disadvantages.

Recall that the German economy had a strong start to the fourth quarter of 2025. According to the monthly report of the country’s Ministry of Economy, current indicators point to a confident start to the period.