Ifo business climate rises for sixth month in a row to highest level since spring 2023
Despite high energy prices, German business sentiment improved further: the Ifo index climbed to 90.2 points in October. Economists had expected no change.
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German business sentiment unexpectedly improved further in October. The Ifo business climate index rose 0.3 points to 90.2, the Munich-based Ifo Institute said on Monday. Analysts had on average expected it to stagnate at 89.9. It was the sixth consecutive increase and the highest level since spring 2023.
Companies were more optimistic about the coming months but rated their current situation weaker. Sentiment in manufacturing improved markedly, while it deteriorated among service providers, with the exception of IT services, which benefit from demand for AI and the construction of new data centers. "The economic recovery continues," Ifo President Clemens Fuest said. About 9,000 companies were surveyed.
Economists were cautious. IKB analyst Klaus Bauknecht sees no sign of a sustainable investment upswing in the Ifo index, dpa-AFX reported. The German government forecasts 1.3% growth in 2026, as does the International Monetary Fund.