Germany’s ifo Business Climate Index rose to 89.0 in August 2025 (Jul: 88.6), reflecting slightly brighter expectations, though the current situation remained weak.

• The Expectations Index improved to 91.6 (Jul: 90.8), the highest in over two years, while the Current Situation Index slipped to 86.4 (Jul: 86.5), indicating optimism about the outlook but persistent weakness in present conditions.

• Manufacturing sentiment worsened to -12.2 (Jul: -11.9), with softer assessments of current business and no signs of stronger order inflows, though capital goods producers reported improvement.

• Services edged down to 2.6 (Jul: 2.8); current conditions improved but expectations grew more cautious.

• Trade declined further to -21.4 (Jul: -20.3), as business performance weakened despite slightly less pessimistic expectations.

• Construction fell to -15.3 (Jul: -14.3), with companies less satisfied with current activity but showing a somewhat improved outlook.