The ZEW Indicator of Economic Sentiment for the Euro Area rose by 18.6 points in June 2026 to 9.5, significantly surpassing market expectations of -7.2. This sharp improvement was driven largely by hopes for a resolution to the conflict in the Middle East, which is expected to ease pressures on energy prices and inflation.
In June, 57.7% of analysts foresaw no change in overall economic activity, while 25.9% anticipated an improvement and 16.4% expected a deterioration. The index of inflation expectations dropped by 19.5 points to 45.8, indicating a notable shift in sentiment regarding future price developments.
By contrast, assessments of the current economic situation worsened slightly: the corresponding index slipped by 2 points to -43.4, signaling that, despite improved outlooks, present conditions remain challenging.
