The ZEW Indicator of Economic Sentiment for the Euro Area rose by 7.1 points from the prior month to 40.8 in January 2026, the highest since July 2024 and above market expectations of 35.2. In January, about 55.8% of the surveyed analysts expected no changes in economic activity, 42.5% predicted improvement and 1.7% anticipated a deterioration. In the meantime, the indicator of the current economic situation increased by 10.4 points to -18.1 and inflation expectations went down by 3 points to -7.6.