Financial News: German Business Confidence Weakest Since 2020

German Business Confidence Weakest Since 2020

04/24/2026 - 06:19:00 (RTTNews)

(RTTNews) - German business confidence declined to its lowest level in nearly six years in April, driven by the supply chain disruptions and energy shocks caused by the war in the Middle East, survey data from the ifo Institute revealed Friday.

The business climate index dropped to 84.4 in April from 86.3 in March. The reading hit the lowest since May 2020 but remained above economists' forecast of 85.7.

Companies were considerably more pessimistic about the coming months and they assessed their current situation as worse.

"The German economy is being hit hard by the Iran crisis," ifo Institute President Clemens Fuest said.

The current situation index fell to 85.4 in April from 86.7 in the previous month. At the same time, the expectations index declined to 83.3 from 85.9 a month ago.

The survey showed that the business climate in manufacturing deteriorated in April due to significantly more pessimistic expectations. By contrast, companies assessed their current situation as somewhat better despite supply bottlenecks.

In the service sector, business confidence declined considerably in April. Expectations continued to deteriorate and assessments of the current situation became worse.

The business climate in trade also dropped significantly as companies noticeably adjusted their assessments both for expectations and the current situation downward. Retailers were worried in particular as rising inflation would weigh on consumer confidence.

In construction, the business climate plummeted largely due to the sharp deterioration in expectations. Companies were considerably less satisfied with current business.

A plunging ifo index underlines the growing concerns among German companies about the adverse economic impact of the war in the Middle East, ING economist Carsten Brzeski said.

The economist noted that the war in the Middle East, the energy price shock and possible supply chain frictions weigh on the German economy.

For comments and feedback: contact editorial@rttnews.com

Market News provided by RTTNews

RECENT INTERNATIONAL FINANCIAL NEWS

Treasury Announces Details Of Twenty-Year Bond Auction (03 hr(s), 45 min(s), 14 sec(s) ago)
(RTTNews) - The Treasury Department on Thursday announced the details of this month's auction ...Full Story»

U.S. Business Inventories Increase Slightly More Than Expected In March (03 hr(s), 49 min(s), 14 sec(s) ago)
(RTTNews) - Partly reflecting a jump in wholesale inventories, the Commerce Department released a ...Full Story»

U.S. Import Prices Jump 1.9% In April, Much More Than Expected (04 hr(s), 01 min(s), 14 sec(s) ago)
(RTTNews) - The Labor Department released a report on Thursday showing a substantial increase in i ...Full Story»

U.S. Retail Sales Growth Matches Estimates In April (04 hr(s), 14 min(s), 14 sec(s) ago)
(RTTNews) - A report released by the Commerce Department on Thursday showed retail sales in the U. ...Full Story»

U.S. Jobless Claims Climb More Than Expected To 211,000 (04 hr(s), 19 min(s), 14 sec(s) ago)
(RTTNews) - First-time claims for U.S. unemployment benefits rose by more than expected in the wee ...Full Story»

U.S. Import Prices Jump Much More Than Expected In April (06 hr(s), 11 min(s), 14 sec(s) ago)
(RTTNews) - The Labor Department released a report on Thursday showing a substantial increase by i ...Full Story»

Irish Inflation Climbs To 27-month High (06 hr(s), 11 min(s), 14 sec(s) ago)
(RTTNews) - Ireland's consumer price inflation accelerated further in April to the highest lev ...Full Story»

U.S. Retail Sales Increase In Line With Estimates In April (06 hr(s), 13 min(s), 14 sec(s) ago)
(RTTNews) - A report released by the Commerce Department on Thursday showed retail sales in the U. ...Full Story»