US EditionGerman Business Sentiment Unexpectedly Falls in December, Ifo Survey ...
The Ifo confidence barometer fell to 87.6 amid manufacturing slump and weak Christmas sales, marking the second consecutive monthly decline in German business sentiment.
- On Wednesday, the Ifo institute reported German business sentiment fell to its lowest level in seven months in December, with the Ifo confidence barometer dropping for a second straight month in a poll of about 9,000 businesses.
- A mix of structural and cyclical problems has left the manufacturing sector hit by a prolonged slump, rising competition from China, the US tariff policy, and weak morale among retailers and service-sector businesses.
- Ifo president Clemens Fuest said `The year is ending without any sense of optimism,' as businesses report little sign of reform or the promised spending blitz by Chancellor Friedrich Merz.
- Leading economic institutes have trimmed next-year economic forecasts to between 0.8 and one percent expansion, contrasting with the German government's 2026 projection.
- Looking to 2026, officials expect the economy to pick up speed on the government spending ramp-up on defence and infrastructure, but Capital Economics says fiscal stimulus has not yet had a meaningful impact.
35 Articles
35 Articles
The mood in the German executive days has once again clouded. The ifo business climate index declined in December for the second month in a row. That does not mean good for the German economic prospects.
The mood among companies in Germany deteriorated slightly at the end of the year.
Bankinter Market Consensus The December IFO Business Climate Survey came out somewhat worse than expected: 87.6 points vs 88.2 expected and 88.1 previous. By Components: Current Conditions 85.6 vs 85.8 expected and 85.6 previous and Expectations 89.7 vs 90.5 expected and 90.6 previous. Review team opinion: Negative data, but no market impact, being in line with the data we met on Tuesday on manufacturing PMI (47.7 vs 48.6 est. and 48.2 ant.).Th…
Germany turns off the lights: the Ifo index collapses in December, goodbye to optimism for 2026. - Economic Scenarios
The German locomotive stalls again. The December Ifo index shows a further deterioration, with manufacturing and trade struggling. Consumer spending had a disappointing Christmas, and companies are cutting production. This is yet another negative forecast . Anyone hoping for a year-end miracle for the German economy will have to think again. Business sentiment in Germany has deteriorated once again, closing 2025 on a decidedly gloomy note. 1 The…
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