Germany - Ifo Business Climate Index

Germany's Ifo Business Climate Index fell to 87.7 in September 2025, its lowest point in four months. This represents a 1.3% decrease from August's reading of 88.9. The decline stems from lower business expectations and a worse assessment of current conditions. Factors contributing to this sentiment include uncertainty over US tariff policy and slow progress on domestic economic reforms. The waning effect of past tariff-driven order surges and broad-based sector weakness, except for construction, also shape the outlook. Germany's record low Ifo Business Climate Index was 75 in April 2020 and record high was 105 in January 2018.