Germany’s Ifo Business Climate Index rose to 88.6 in February 2026 from 87.6 in January, slightly beating market expectations of 88.4. The reading marked the highest level since August 2025, pointing to tentative signs of recovery in Europe’s largest economy. Ifo President Clemens Fuest said stronger domestic demand and fiscal stimulus are supporting the economy, but warned that trade uncertainty continues to weigh on exporters. Firms reported greater satisfaction with current conditions (86.7 vs 85.7 January), while expectations also improved (90.5 vs 89.6). Sector-wise, sentiment strengthened in manufacturing (-11.3 vs -12.3), driven by notably better assessments of current conditions. Confidence also rebounded among service providers (0.1 vs -2.6), largely on improved expectations and led by the logistics sector, and in construction (-11.5 vs -14.3). In contrast, morale in trade edged lower (-21.8 vs -21.1), as companies viewed their current situation less favorably. source: Ifo Institute

Business Confidence in Germany increased to 88.60 points in February from 87.60 points in January of 2026. Business Confidence in Germany averaged 96.69 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 March of 2026.

Business Confidence in Germany increased to 88.60 points in February from 87.60 points in January of 2026. Business Confidence in Germany is expected to be 89.10 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
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 88.6 87.6 88.4 87.9
2026-03-25 09:00 AM
Ifo Business Climate
Mar 88.6 89.1

Components Last Previous Unit Reference
Ifo Current Conditions 86.70 85.70 points Feb 2026
Ifo Expectations 90.50 89.60 points Feb 2026

Related Last Previous Unit Reference
Ifo Business Climate 88.60 87.60 points Feb 2026
Capacity Utilization 77.40 77.70 percent Mar 2026


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
88.60 87.60 109.80 75.00 1991 - 2026 points Monthly
2015=100, SA

News Stream
German Business Climate Hits Six-Month High
Germany’s Ifo Business Climate Index rose to 88.6 in February 2026 from 87.6 in January, slightly beating market expectations of 88.4. The reading marked the highest level since August 2025, pointing to tentative signs of recovery in Europe’s largest economy. Ifo President Clemens Fuest said stronger domestic demand and fiscal stimulus are supporting the economy, but warned that trade uncertainty continues to weigh on exporters. Firms reported greater satisfaction with current conditions (86.7 vs 85.7 January), while expectations also improved (90.5 vs 89.6). Sector-wise, sentiment strengthened in manufacturing (-11.3 vs -12.3), driven by notably better assessments of current conditions. Confidence also rebounded among service providers (0.1 vs -2.6), largely on improved expectations and led by the logistics sector, and in construction (-11.5 vs -14.3). In contrast, morale in trade edged lower (-21.8 vs -21.1), as companies viewed their current situation less favorably.
2026-02-23
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