Financial News: Amended: German Ifo Business Confidence Strongest Since 20

Amended: German Ifo Business Confidence Strongest Since 2024

08/25/2025 - 07:53:00 (RTTNews)

(RTTNews) - Corrects first para

German business sentiment hit the highest level in more than a year in August on expectations that the fiscal stimulus would help to kickstart the economic recovery. The business climate index rose to 89.0 in August from 88.6 in the previous month. This was the highest score since April 2024 and also came in above economists' forecast of 88.6.

"The German economy's recovery remains weak," ifo President Clemens Fuest said.

The improvement was due to the rise in expectations among companies. However, assessment about the current situation weakened slightly.

At 91.6, the expectations index climbed unexpectedly to the highest since February 2022, from 90.8 in July. The score was forecast to drop to 90.2.

The current situation index fell slightly to 86.4 from 86.5 in the previous month. The reading was seen at 86.7.

In the manufacturing sector, the business climate index fell slightly as companies were somewhat less satisfied with current business and their expectations were revised slightly downward. While there were no indications of growth in order intake in overall manufacturing, sentiment among capital goods manufacturers improved noticeably.

The survey showed a slight deterioration in the service sector in August. While the current situation was assessed as significantly better, expectations became more cautious. However, sentiment improved among architecture and engineering firms.

In trade, the index deteriorated due to poorer business performance. However, expectations were slightly less pessimistic.

In construction, sentiment dropped slightly after many months of stability. Companies expressed less satisfaction with the current situation but their outlook for the coming months improved, the survey showed.

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