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German industries show split confidence in latest Ifo Business Climate Index

Some sectors gain ground, but pessimism looms. Why Germany’s economic mood is more divided than ever—and what it means for businesses ahead.

In this picture there is a huge glass corporate building. Behind there is a blue sky.
In this picture there is a huge glass corporate building. Behind there is a blue sky.

Mood in companies worsens slightly again - German industries show split confidence in latest Ifo Business Climate Index

The latest Ifo Business Climate Index reveals mixed signals across German industries. While some sectors show signs of improvement, others face growing uncertainty. The survey, based on feedback from around 9,000 firms, tracks current conditions and future expectations.

Manufacturing firms reported being somewhat more satisfied with their current operations. Yet their outlook for the next six months darkened, pulling the sector’s overall confidence down. Construction companies, however, saw a clear upward trend in their present situation—though their future expectations also weakened.

The Ifo Index highlights a divided economic landscape. Construction firms enjoy better current conditions, but most sectors—including manufacturing, trade, and services—face softer expectations. The next survey will show whether these trends strengthen or shift.

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