Germany's ifo Business Climate Index rises to 86.9 points in April

27 Apr '25

1 min read

German IFO Business Climate Index rises to 86.9 points in April

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Insights

Germany's ifo Business Climate Index inched up to 86.9 in April from 86.7 in March, indicating slightly improved sentiment.
While companies viewed their current situation more positively, expectations worsened, and uncertainty grew.
In manufacturing, optimism faded after a prior rise, with rising uncertainty and weaker expectations.
Trade sentiment also declined.

The business sentiment among companies in Germany has improved slightly, with the ifo Business Climate Index rising in April to 86.9 points, up from 86.7 points in March. Companies were more positive about their current situation. However, expectations were gloomier. Uncertainty among the companies has increased. The German economy is preparing for turbulence.

In manufacturing, the index fell again after a strong increase in the previous month. This was due to noticeably more pessimistic expectations. Uncertainty among manufacturing companies grew especially strongly. By contrast, the current business situation was assessed as somewhat better. The order backlog is no longer declining, according to the ifo Institute for Economic Research.

In trade, the index fell. Expectations were pessimistic again. The trading companies assessed their current business situation as somewhat worse. The negative development was driven primarily by the wholesale sector.

Fibre2Fashion News Desk (RR)

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