The ZEW Indicator of Economic Sentiment for the Euro Area climbed by 13.9 points to 23.4 in June 2026, marking its highest level in five months and surpassing market forecasts of 11.2. This increase indicates improving sentiment, supported by market optimism over a potential resolution to the conflict involving Iran.
In June, 64% of analysts expected no change in economic activity, 29.7% anticipated an improvement, and 6.3% forecast a deterioration. The assessment of the current economic situation also brightened, with the corresponding index rising by 5.7 points to -37.7. At the same time, inflation expectations fell sharply, dropping 35.4 points to 10.4.
