Germany’s business climate index drops as year ends
Germany’s Ifo Business Climate Index fell to 87.6 points in December, continuing the decline seen in the previous month, according to the Ifo Institute for Economic Research.
The survey, conducted in June and involving around 9,000 companies, showed that the Business Climate Index for industry and trade dropped from a downwardly revised 88 points in November to 87.6, below the market expectation of 88.2 points, News.Az reports, citing foreign media.
Germany’s Ifo Expectations Index also fell from 90.5 to 89.7 points, while the Current Situation Index remained stable at 85.6 points.
The institute noted that companies are increasingly pessimistic about the first half of 2026, while their assessment of current conditions has remained unchanged, leaving the year ending without optimism.
Confidence in the German manufacturing sector declined, with fewer new orders and plans to scale back production. In the service sector, the business climate slipped into negative territory as providers reported lower satisfaction with current business and weaker expectations.
Retailers expressed dissatisfaction with Christmas sales, contributing to a deteriorating trade climate, while construction remained unchanged at a low level.
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