German business sentiment improves in October, Ifo survey finds
EWG•Germany’s Ifo business climate index rose to 90.2 in October from 89.9 in September, above analysts’ 90.0 forecast. Expectations increased to 91.6, while the current conditions index fell to 88.8 from 89.5.
1. Expectations improve
The Ifo institute said its business climate index rose to 90.2 in October from 89.9 in September. The expectations index increased to 91.6 from 90.4, and Ifo president Clemens Fuest said the economic recovery was continuing.
2. Current conditions weaken
The current conditions index fell to 88.8 from 89.5. Capital Economics expects the German economy to have stalled in the third quarter but said the survey supports its view that the economy will return to growth in the fourth quarter. The German government raised its growth forecasts to 1.3% for 2026 and 1.1% for 2027, from 0.5% and 0.9%, respectively.
