German investor confidence improved markedly in July, with the ZEW Economic Sentiment index climbing to 52.7, its strongest level since February 2022 and well above the consensus range around 50. A separate ZEW gauge of current conditions also narrowed its negative reading to –59.5 from –72.0, underscoring expectations of a gradual pick-up even as assessments of the present situation remain weak. Subsequent business-activity surveys painted a mixed but slightly firmer picture. Germany’s flash composite Purchasing Managers’ Index edged up to 50.3 in July, signaling marginal growth as services expanded (50.1) and manufacturing stayed just below the 50-point threshold that separates contraction from expansion (49.2). Household sentiment has yet to follow suit, with the GfK consumer-climate indicator slipping to –21.5 for August, its second decline in three months. Across the border, France’s July flash PMIs stayed in contraction territory; manufacturing printed at 48.4 while services were at 49.7, leaving the composite reading at 49.6. The latest data highlight pockets of resilience in Europe’s largest economy but suggest the region’s recovery remains uneven.