The ZEW Business Sentiment Index for Germany rose 7 points in May after two months of sharp declines, but remained in negative territory for the third consecutive month, reaching -10.2 points compared to a drop of -17.2 in April. This was slightly below expectations of a decline to -19.2. The May increase in the index came despite a slight decrease in the assessment of the current economic situation in Germany to -77.8, a drop of 4.1 points from April, reflecting the ongoing military conflict in the Middle East and increasing inflationary pressures in Germany.

In contrast, the index for the Eurozone rose by 11.3 points to -9.1 points, exceeding expectations of a decline to around 21.6. The assessment of the current situation improved by 1.6 points to -41.4.