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Macro EconomyMedium•26 October 2026•
3 min read

German Ifo Business Climate Index Rises to 90.2 Points in October

Key Facts

1The expectations index stood at 91.6 points in October, compared with 90.4 in the previous reading.
2The current assessment index fell to 88.8 points from 89.5.
3The euro rose 0.1% against the dollar to around 1.1212 at the time of FXStreet’s report.
4The European Central Bank meets on October 29, with decisions published at 14:15 and the press conference at 14:45 Central European Time.

Germany’s Ifo Business Climate Index rose to 90.2 points in October, according to a report published by FXStreet on October 26, 2026. The Ifo Institute said the improvement was driven by more optimistic business expectations. By contrast, companies assessed their current situation as slightly worse. The institute said, "The economic recovery is continuing." The survey details show that the overall improvement was not reflected equally across all sectors.

In manufacturing, both the assessment of the current situation and expectations improved for the first time in more than 3 years, according to the Ifo Institute. New orders also increased, prompting companies to plan higher production. The institute said, "The number of new orders increased," and that companies "are planning to increase production." These developments point to improving signals for industrial demand and production plans, while the overall index’s assessment of current conditions remained slightly weaker. This divergence between expectations and current conditions stands out in the October reading.

In services, the business climate deteriorated as companies were dissatisfied with their current business, despite improved expectations. IT service providers stood out positively within the sector, according to the institute. In trade, the index was unchanged: retailers’ assessment of their current situation slipped slightly, while expectations improved. Wholesale trade performed better than retail trade. In construction, the index rose, with a marked improvement in the assessment of current business and a slight increase in expectations.

The survey indicators distinguish between expectations and current conditions: the expectations index rose to 91.6 points in October from 90.4 in the previous reading, while the current assessment index fell to 88.8 points from 89.5. The Ifo survey is based on around 9,000 monthly responses from companies in manufacturing, services, trade and construction. These responses provide a picture of companies’ assessments of their situation and expectations, as well as the sectoral differences seen in October’s results. Expectations improved while the assessment of current conditions remained below its previous level.

In currency markets, the euro rose 0.1% against the dollar to around 1.1212 at the time of FXStreet’s report following the release of the Ifo data. Attention now turns to the European Central Bank’s monetary policy meeting on October 29. The meeting’s decisions are scheduled for publication at 14:15 Central European Time, with the press conference set to begin at 14:45. The main refinancing rate stands at 2.65% as of September 16, according to the European Central Bank. The Ifo Institute scheduled the release of its next survey results for November 24, 2026.