German investor sentiment rose sharply in June, with the ZEW economic research institute's indicator of economic expectations climbing 22.3 points to 47.5, signalling greater optimism about Europe's largest economy, ZEW said on Tuesday. The gauge of current conditions also improved, rising 10 points to -72.0 — its strongest monthly gain since April 2023, though still the weakest reading among major eurozone economies. ZEW President Achim Wambach said sentiment was buoyed by stronger consumer demand, rising investment, and renewed confidence in fiscal measures announced by Germany's new government. He added that alongside recent European Central Bank rate cuts, these developments could mark the end of nearly three years of stagnation. "Confidence is picking up. In June 2025, the ZEW indicator sees another tangible improvement. Recent growth in investment and consumer demand have been contributing factors. This development also seems to strengthen the assessment that the fiscal policy measures announced by the new German government can provide a boost to the economy." said Wambach. Investor confidence across the eurozone also improved, with the ZEW index for the bloc up 23.7 points at 35.3. The current conditions reading rose 11.7 points to -30.7. Attribution: Amwal Al Ghad English Subediting: Y.Yasser
