German business morale rises more than expected in September, Ifo finds
- On Thursday, the Ifo Institute reported Germany's business climate index increased to 89.9 from 88.8 in August, based on around 9,000 monthly business responses, signaling that Europe's largest economy is weathering energy price shocks.
- Five leading economic institutes raised Germany's 2026 growth forecast to 1.3% from 0.6%, and 2027 growth to 1.1% from 0.9%, reflecting improved economic outlooks across the continent.
- Flash PMI data on Wednesday showed German business activity expanding at its fastest pace in almost a year, outperforming the 89.0 increase forecast by analysts polled by Reuters.
- Chancellor Friedrich Merz's government decided to cut fuel taxes by $0.19 a liter starting October 1, a response to rising living costs after poor conservative election results in Mecklenburg-Western Pomerania on Sunday.
- Ifo's gauge of expectations rose to 90.4 from 89.1, while companies' assessment of their current situation improved to 89.5 from 88.5, reinforcing signs of broad-based economic stabilization.
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Economy Minister Katherina Reiche outlines her picture of Germany in 2030 in an interview, she comments on the reform course of the government and on the tank discount that she never wanted. The plucked CDU calls her to return to her own roots.
Federal Minister for Economic Affairs Katharina Reiche (CDU) insists on a consistent reform course. She does not shy away from unusual comparisons.
The ifo business climate rose to 89.9 points in September and thus to the highest level since May 2023. "We now have positive developments in various areas," says ifo President Clemens Fuest in conversation with Dietmar Deffner.
The Ifo index, which measures the confidence of entrepreneurs in Germany in September has increased by 1.1 points to 89.9. This is the fifth rise in the last few months and the highest value in recent years. (ANSA)
The economy seems to be recovering, and companies are currently looking positively for the future. The business climate index rose to the highest level since 2023.
German business morale rises more than expected in September, Ifo finds
German business morale rose more than expected in September, a survey showed on Thursday, signalling that Europe's largest economy is weathering an energy price shock that has pushed fuel costs to record highs.
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