Germany’s unique path
04 May 2026
Posted in
sentix Economic News
Although the war in Iran is still smouldering and an end is not yet in sight, investors appear surprisingly relaxed regarding economic trends. Asia and the US in particular are showing strong rises in their overall indices. Europe, by contrast, is struggling, although the Eurozone overall index has managed to improve by at least 2.7 points. However, the German economy is weighing heavily on the figures. The ‘German Sonderweg’ is down by 3.2 points, marking the third consecutive decline. A government crisis and economic problems are currently going hand in hand.
Headlines of the month
- The sentix Economic Sentiment Index for the eurozone improved slightly in May, rising by 2.7 points to -16.4 points. This suggests that investors do not, at least, foresee a further escalation of the simmering conflict with Iran. However, concerns about inflation remain high.
- This stabilisation does not, however, apply to Germany, which finds itself not only in a government crisis but also in a distinct economic trajectory of its own – unfortunately, a negative one. Bucking the trend, the overall index fell by 3.2 points to its lowest level since January 2025.
- Globally, there are clear signs of easing. This applies above all to the US, with the overall index rising by a substantial 7.6 points. But the Asia ex-Japan region is also staging a strong comeback, up by 8.4 points. Japan has also improved by roughly the same margin, enabling the global index to rise by 6.5 points.
sentix Eco Report Euro area
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