FX.co ★ German Investor Morale Improves in October

The ZEW Economic Sentiment Indicator for Germany increased by two points in October 2025, reaching 39.3, which is the highest since the three-year peak of 52.7 recorded in July. However, it still fell short of the market's expected 40.5. ZEW President Prof. Achim Wambach noted, "There are still hopes for a medium-term recovery. Despite the uncertainties surrounding the implementation of the government’s investment program and ongoing global challenges, the ZEW Index showed a slight increase in October." This uptick follows a recent decline in exports to China, with expectations significantly improving for export-driven sectors, notably in metal production, pharmaceuticals, mechanical engineering, and electrical equipment manufacturing. Conversely, the outlook for the automotive sector saw a minor decline. In addition, the index assessing current economic conditions slipped by 3.6 points to -80.0, its lowest since May.