German economic sentiment rose in Sept., but current conditions remain weak, hinting at a fragile recovery.

Germany's ZEW Economic Sentiment index rose to 37.3 in September, surpassing expectations, reflecting improved investor optimism, especially in export-driven sectors like autos, chemicals, and pharmaceuticals. However, the Current Situation index worsened to -76.4, below the expected -75.0, indicating ongoing economic challenges. While sentiment has stabilized and outlooks improved, conditions remain negative, signaling fragile recovery prospects. The data may support the European Central Bank's stance to hold interest rates steady in the final quarter of 2025.