The ZEW Business Sentiment Index in Germany rose 15.8 points in July, reaching a four-month high of 26.3, compared to a 10.5 increase in June. This exceeded expectations of a 15.1 rise. The July increase coincided with a slight improvement in the assessment of the current economic situation in Germany, which rose to -77.6, up 3.4 points from June. This suggests that economic reforms are beginning to bear fruit, particularly in the export and domestic demand sectors.

At the sector level, most sectors showed improvement in their indicators in July, with mechanical engineering and domestic demand rising by 14.5 and 14.7 points, respectively. The chemicals, pharmaceuticals, and metals sectors also recorded slight growth.

In contrast, the index concerned with the Eurozone rose by 13.9 points to reach 2345 points, while expectations indicated a rise of about 11.2, while the index assessing the current situation continues in the negative zone at -37.7, which is 5.7 points lower than the June reading.