German ifo business climate rises to 90.2 in October as expectations improve

Germany's ifo Business Climate Index rose to 90.2 points in October from 89.9 in September, the ifo Institute said on Monday, as firms' expectations improved while their view of current conditions weakened.

What happened

The index, which is based on about 9,000 monthly survey responses from firms in manufacturing, services, trade and construction, rose 0.3 point (computed). Expectations for the next six months improved, while companies assessed their current situation as slightly worse, ifo said.

The current-situation balance index fell to 88.8 from 89.5 in September, a drop of 0.7 point (computed), according to ifo's data table. The expectations index rose to 91.6 from 90.4.

In manufacturing, the index rose significantly. Companies rated both their current situation and their expectations as substantially better, and both indicators returned to positive territory for the first time in more than three years, ifo said. Incoming orders increased, and companies plan to expand production.

In the service sector, the business climate suffered a setback as firms were less satisfied with current business, though expectations were more positive. In trade the indicator was unchanged, and in construction it rose.

The background

The index stood at 84.7 in April 2026 and has risen in each month since, according to ifo's data table: 85.0 in May, 85.6 in June, 86.6 in July, 88.8 in August and 89.9 in September. ifo said the economic recovery is continuing.

What to watch

ifo's next business climate release is scheduled for November 24 at 10:30 a.m. CET, according to the institute's release calendar.