The ZEW Business Sentiment Index for Germany rose in January, adding 13.8 points to reach 59.6, compared to 45.8 in December. This marks its best performance in four years, exceeding expectations of 50.0. The December increase coincided with a significant improvement in the assessment of the current economic situation in Germany, which rose to -72.7, an increase of 8.3 points from December’s reading. This boosted economic optimism, and the January reading could represent a turning point for 2026, according to the institute’s president.

Meanwhile, the index for the Eurozone rose by 7.1 points to 40.8, surpassing expectations of a rise to around 36.7. The current situation assessment index also increased by 10.4 points to -18.1.