Fashion
Germany’s ZEW index falls to -0.5 in March amid Middle East tensions
The sharp fall reflects growing concerns over rising energy prices and inflationary pressures linked to the ongoing conflict, ZEW said in a press release.
“The ZEW Indicator has collapsed,” said Achim Wambach, president of ZEW, noting that the escalation in the Middle East is fuelling energy costs and increasing risks to Germany’s fragile economic recovery. He added that financial market experts remain sceptical about a swift resolution to the conflict, raising uncertainty over the economic outlook.
Germany’s economic sentiment plunged in March 2026, with the ZEW index falling 58.8 points to -0.5 amid Middle East tensions driving energy and inflation concerns.
While the current situation improved slightly to -62.9, it remained weak.
Around 80 per cent expect rising inflation.
Eurozone sentiment also declined sharply, with expectations at -8.5 and conditions worsening to -29.9.
In contrast, the assessment of Germany’s current economic situation showed a modest improvement. The corresponding indicator rose by 3 points to -62.9, although it remains firmly in negative territory, signalling continued weakness in overall economic conditions.
Inflation concerns have intensified, with around 80 per cent of respondents anticipating increased price pressures in both Germany and the broader eurozone.
The negative sentiment extended across the eurozone, where the expectations index fell by 47.9 points to -8.5, slipping into negative territory. Meanwhile, the assessment of the current economic situation in the eurozone declined further to -29.9 points, down by 16.3 points from February.
Fibre2Fashion News Desk (SG)