08:10 AM EDT, 09/29/2025 (MT Newswires) -- The eurozone had braced for economic turmoil on the back of the trade war with the United States, said ING.

With more clarity on the trade relationship with the U.S. -- for now --and a decent domestic performance, the reality is that the economy is doing fine so far, wrote the bank in a note. "Not great, but fine."

Gross domestic product growth was slightly positive in Q2 and ING expects Q3 to see small positive growth as well, perhaps even slightly faster at 0.2% quarter-on-quarter.

The economic sentiment indicator for September reflects this, as cautious optimism is returning about the future, pointed out the bank. The overall indicator saw a minor increase from 95.3 to 95.5 on Monday. While the manufacturing and service sectors both showed slightly weaker judgments of recent output, their expectations for the coming months did improve.

Consumer confidence ticked up by 0.6 point, although it remains low by historical standards.

But this isn't by any means the start of a strong economic revival either, added ING. With modest output growth at the moment and weaker overall employment and price expectations, the current environment continues to be sluggish overall.

Overall, risks are persisting -- but European businesses had braced for worse, according to the bank. While many effects from the structurally changing economic environment still have to play out, the score so far is OK.

That will likely be reflected in a small positive growth rate for Q3.