Germany’s ifo Business Climate Index rose for a sixth consecutive month in October, as stronger expectations outweighed a weaker assessment of current conditions.
The seasonally adjusted index reached 90.2 points, up from 89.9 in September. Expectations advanced to 91.6 from 90.4, while the current assessment measure fell to 88.8 from 89.5, the ifo Institute said. Its monthly series shows the headline index gained in each month from May through October.
The latest reading builds on earlier EconoTimes coverage of the survey’s mixed October signal.
Manufacturing firms reported better conditions and expectations, more new orders and plans to increase production. For the first time in over three years, the institute said, manufacturing sentiment was positive on both current conditions and expectations. Services sentiment declined as firms rated current business less favorably, although their expectations improved. Trade sentiment was unchanged, while construction sentiment rose.
The index tracks business views rather than completed economic activity. The ifo Institute said its monthly survey draws on about 9,000 companies, which assess their current situation and prospects for the next six months. Germany’s economy grew 0.3% quarter on quarter and 1.0% year on year in the second quarter of 2026, according to the latest detailed data from the Federal Statistical Office, known as Destatis.
Carsten Brzeski, ING’s global head of macro, said higher energy prices and interest rates were beginning to weigh on companies’ assessments. He said the outlook also depends on fiscal stimulus reaching more of the economy and identified low water levels on major transport waterways as a risk. Those are Brzeski’s assessments, not explanations given by the ifo Institute for October’s change.
The ifo Institute’s next index release is scheduled for Nov. 24.
