Germany Business Confidence

The Ifo Business Climate Index for Germany rose to 88.4 in October 2025 from 87.7 in September, above forecasts of 88. The expectations index rose to 91.6, the highest since February 2022, from 89.7 in the previous month while the current conditions fell to 85.3 from 85.7. “Companies remain hopeful that the economy will pick up in the coming year. However, the current business situation was assessed as slightly worse”, Ifo President Clemens Fuest said. In the manufacturing sector, expectations improved, although companies remained less satisfied with their current business situation. The services sector saw an uptick in sentiment, driven by a better assessment of current conditions and reduced skepticism about the outlook. In retail, business confidence strengthened as expectations became less pessimistic, though current conditions were viewed somewhat more negatively. Meanwhile, sentiment in the construction sector weakened slightly, with the index posting a modest decline.