The overall Ifo Business Climate Index rose to 89.0 in August 2025, up from 88.6 in July, marking its highest level since around May or April 2024
The Business Expectations Index, which reflects firms’ outlook over the next six months, jumped to 91.6 in August—up from 90.7—indicating growing optimism about the future
Meanwhile, the Current Situation Index (or current economic assessment) edged down slightly to 86.4 from 86.5, signaling some caution despite rising optimism.
This has been happening for German economy for almost 5 years now that once a year all of a sudden their economy starts looking promising. But ask German people they have no expectations left whatsoever. The inflation and declining exports are still a growing concern. But, may be tom console the public sentiment these data build up after their GDP has again contracted for Q2 2025.
Most of the media says Germany is under deep crisis since Pandemic. Their economy has fallen apart and there's no hope left!