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Investor morale in Germany has worsened markedly, as financial market experts were disappointed by the recent trade deal between the EU and the US, according to a closely watched survey.

After increasing for several months, the Centre for European economic research (ZEW)s indicator of economic sentiment in Germany fell by 18 points to 34.7 points. The assessment of the current economic situation also declined, by 9.1 points.

The ZEW indicator experiences a substantial decline, also due to the poor performance of the German economy in the second quarter of 2025. The outlook has worsened in particular for the chemical and pharmaceutical industries. The mechanical engineering and metal sectors as well as the automotive industry are also severely affected.