Germany’s ifo Business Climate Index fell to 87.7 (vs 89.3 expected) in September 2025 from 88.9 in August, marking weaker sentiment as both current assessments and expectations softened.

• The Current Situation Index edged down to 85.7 (Aug: 86.4), reflecting less satisfaction with ongoing business conditions.

• The Expectations Index declined sharply to 89.7 (Aug: 91.4), signaling growing caution about the outlook.

• Overall business climate balances worsened to -8.3 (Aug: -5.7), indicating a setback in recovery prospects.

• Manufacturing sentiment fell to -13.3 (Aug: -12.4), with weaker current activity and another drop in new orders.

• Services slipped back into contraction at -3.0 (Aug: 2.6), its lowest since February, with notable weakness in transport and logistics.

• Trade deteriorated to -22.9 (Aug: -21.4), as expectations worsened despite a slight improvement in current retail assessments.

• Construction improved to -14.6 (Aug: -15.5), with firms more satisfied about current activity and expectations continuing to brighten.