The ZEW Indicator of Economic Sentiment for the Euro Area rose by 11.3 points to -9.1 in May 2026, beating market expectations of -20. The uptick suggests sentiment is improving, as markets continue to price in hopes of a quick resolution to the Iran conflict. In May, 51.1% of analysts expected no change in economic activity, while 29% anticipated a deterioration and 19.9% expected improvement. The assessment of the current situation also improved, with the index rising 1.6 points to -41.4, while inflation expectations dropped 13.7 points to 65.3.