The ifo Business Climate Germany index remained unchanged at 85.2 in February, below expectations of a rise to 85.6.

• The Situation index fell -1.0 pts to 85.0, well below expectations of a 86.5 reading.
• The Expectations index increased 1.1 pts to 85.4, slightly ahead of expectations of a 85.2 reading.

The broad business climate indicator saw a slight 0.1 pt improvement to -13.7.

• The manufacturing index improved 2.7 pts to -22.1. Companies were noticeably less pessimistic about the coming months as order books stabilized.
• The services index fell -2.1 pts to -4.3, the 2nd lowest in around a year. Both the current and future assessments deteriorated in transport and logistics specifically (likely caused by tariff talk).
• Both construction and trade improved, up 3.3 pts to -26.2 and up 0.5 pts to -27.6 respectively, but both indexes still signaled strong pessimism.

• Ifo’s heatmap suggests that much of the German economy is still in “crisis” mode.