Germany’s Ifo Business Climate Index remained unchanged at 87.6 in January 2026, holding near its lowest level since May 2025 and below market expectations of 88.1, suggesting Europe’s largest economy is starting the year with little momentum. Assessments of the current situation inched up to 85.7 from 85.6, while expectations slipped slightly to 89.5 from 89.7. By sector, a decline in the service industry (-2.6 vs -2.1) offset gains in other areas, with sentiment improving among manufacturers (-12.2 vs -14.6), traders (-21.1 vs -24.6), and construction firms (-14.2 vs -14.9). source: Ifo Institute

Business Confidence in Germany remained unchanged at 87.60 points in January. Business Confidence in Germany averaged 96.71 points from 1991 until 2026, reaching an all time high of 109.80 points in January of 1991 and a record low of 75.00 points in April of 2020. This page provides the latest reported value for - Germany Business Confidence - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news. Germany Ifo Business Climate Index - data, historical chart, forecasts and calendar of releases - was last updated on February of 2026.

Business Confidence in Germany remained unchanged at 87.60 points in January. Business Confidence in Germany is expected to be 86.00 points by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In the long-term, the Germany Ifo Business Climate Index is projected to trend around 91.00 points in 2027 and 95.00 points in 2028, according to our econometric models.



Calendar GMT Reference Actual Previous Consensus TEForecast
2025-12-17 09:00 AM
Ifo Business Climate
Dec 87.6 88.0 88.2 88.5
2026-01-26 09:00 AM
Ifo Business Climate
Jan 87.6 87.6 88.1 88.4
2026-02-23 09:00 AM
Ifo Business Climate
Feb 87.6 87.3

Components Last Previous Unit Reference
Ifo Current Conditions 85.70 85.60 points Jan 2026
Ifo Expectations 89.50 89.70 points Jan 2026

Related Last Previous Unit Reference
Ifo Business Climate 87.60 87.60 points Jan 2026
Capacity Utilization 78.00 77.30 percent Dec 2025


Germany Ifo Business Climate Index
In Germany, the IFO Business Climate Index measures entrepreneurs’ sentiment about current business situation and their expectations for the next 6 months. The survey is made by phone and covers 9,000 firms in manufacturing, the service sector, trade and construction. The Business Climate Balance is constructed as the difference between the percentage share of executives that are optimistic and the share that are pessimistic. This balance can take values between -100 (all responding firms assess their situation as poor and expect business to deteriorate) and +100 (all responding firms assessed their situation as good and expect an improvement in their business). For the calculation of the IFO Business Climate Index, the Balance is normalized to the average of a base year (currently 2015).
Actual Previous Highest Lowest Dates Unit Frequency
87.60 87.60 109.80 75.00 1991 - 2026 points Monthly
2015=100, SA

News Stream
German Business Climate Flat in January
Germany’s Ifo Business Climate Index remained unchanged at 87.6 in January 2026, holding near its lowest level since May 2025 and below market expectations of 88.1, suggesting Europe’s largest economy is starting the year with little momentum. Assessments of the current situation inched up to 85.7 from 85.6, while expectations slipped slightly to 89.5 from 89.7. By sector, a decline in the service industry (-2.6 vs -2.1) offset gains in other areas, with sentiment improving among manufacturers (-12.2 vs -14.6), traders (-21.1 vs -24.6), and construction firms (-14.2 vs -14.9).
2026-01-26
German Business Sentiment Falls More Than Expected
The Ifo Business Climate Index for Germany decreased to 87.6 in December 2025, the lowest in seven months, compared to a downwardly revised 88 in November and forecasts of 88.2. The expectations gauge weakened to 89.7 from 90.5, while assessments of current conditions was steady at 85.6. “Companies are more pessimistic about the first half of 2026. The year is ending without any sense of optimism", Ifo President Clemens Fuest said. The manufacturing index declined across most industries, driven by weaker expectations despite a slight improvement in the current situation. New orders fell and production plans were cut. The services business climate slipped into negative territory as current assessments and expectations worsened. Retail showed a weaker current situation and bleak expectations for early 2026 following disappointing Christmas sales. Construction remained subdued, with a weaker current situation partly offset by improved expectations.
2025-12-17
German Business Sentiment Weakens in November
The Ifo Business Climate Index for Germany slipped to 88.1 in November 2025 from 88.4 in October, missing expectations of 88.5 and signaling that firms see little prospect of an imminent recovery. Expectations weakened notably, dropping to 90.6 from 91.6, while assessments of current conditions improved slightly to 85.6 from 85.3. Across sectors, sentiment deteriorated among manufacturers (-13.7 vs -11.9), who grew more skeptical about the months ahead, and among traders (-22.6 vs -21.5), with retailers particularly disappointed by the slow start to the Christmas season. Construction confidence also fell (-16.2 vs -15.3), with weak demand remaining a key constraint. By contrast, sentiment in the services sector improved (0.5 vs 0.0), supported by a sharp uplift in tourism, although transport and logistics saw a notable setback.
2025-11-24