Ifo – resilient business sentiment
Unlike the composite Purchasing Managers’ Index, the Ifo Business Climate Index did not decline but rose slightly, from 89.9 to 90.2.
Dr. Jörg Krämer
Commerzbank Economic Research
10/27/2026
Companies apparently expect conditions to ease over the medium term, which is consistent with the marked improvement in business expectations for the next six months. Overall, the recovery of the German economy is likely to continue. However, it will probably remain only moderate, owing to the lack of far-reaching reforms, Trump’s tariffs, and China’s export offensive.
Ifo business climate rises slightly in October
The Ifo Business Climate Index rose slightly in October from 89.9 to 90.2 (consensus: 89.9; Commerzbank: 90.5). At first glance, this is unspectacular. However, the Ifo business climate is diverging positively from the composite Purchasing Managers’ Index, which had fallen in October after rising for five consecutive months.
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