Financial News: German Ifo Business Confidence At 4-Month Low

German Ifo Business Confidence At 4-Month Low

09/24/2025 - 06:08:00 (RTTNews)

(RTTNews) - German business sentiment weakened to a four-month low in September as prospects of an economic recovery suffered a setback, monthly survey results from the Munich-based ifo Institute showed Wednesday.

The business climate index fell unexpectedly to 87.7 in September from 88.9 in the previous month. The score hit the lowest since May, while it was seen rising to 89.3.

Companies were less satisfied with current business, while their expectations clouded noticeably, the survey showed.

At 85.7, the current situation index dropped from 86.4 in August. A similar lower score was last seen in March. The expectations indicator slid to 89.7 from 91.4 in the prior month.

In manufacturing, the business climate index declined in September as companies assessed their current situation as slightly worse, and expectations became more cautious.

In the service sector, the business climate deteriorated noticeably. Expectations became markedly more pessimistic with the indicator fell to its lowest level since February. Companies also downgraded their assessments of the current situation.

In trade, the business climate worsened, driven by more pessimistic expectations. However, companies assessed the current situation somewhat more positively.

In construction, business confidence improved again following last month's setback. Companies were slightly more satisfied with current business and their expectations for the coming months continued to brighten.

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