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Slight Signs of a Recovery Among the Self-Employed – Access to Credit Remains Difficult
The business climate among the self-employed and microenterprises improved again in September: The “Jimdo-ifo Business Climate Index” rose from -19.7 points in August to -18.8 points. In particular, expectations were less pessimistic, and the assessment of current business was also no longer quite as critical. “It’s still too early to be optimistic, but there are signs of a gradual recovery,” says ifo expert Katrin Demmelhuber. “Among the self-employed, however, there has been only a slow improvement so far.”
How Can the Health and Long-Term Care System Be Reformed?
Germany’s health and long-term care system is under pressure: The number of people in need of long-term care is rising, while there is a shortage of care workers and funding gaps in the social security funds are growing. What are the symptoms, what are the causes – and what treatment can help? Iris Kesternich of the University of Hamburg and Roman Klimke of the Ludwig Erhard ifo Center for Social Market Economy discuss these questions in the latest episode of the ifo podcast “Economics for Everyone.”
Oil Companies in Germany Only Partially Passing on Fuel Discount So Far
The German government’s fuel discount, in effect since October 1, is only partially being passed on at the pumps. “For diesel, filling stations have passed on an average of 15 cents of the 17-cent tax cut per liter in the first five days. For Super E5 gasoline, the average amount was just over 16 cents, and 15 cents for Super E10,” notes Florian Neumeier, Deputy Director of the ifo Center for Public Economics.
Majority in Favor of Mandatory Measures in Early Childhood Education
A clear majority of Germans are in favor of more mandatory measures in early childhood education: 72% thinks it’s right to have a mandatory preschool year, and 79% want uniform mandatory education targets nationwide. “Early childhood education lays an important foundation for children’s cognitive, linguistic, social, and emotional development,” notes Ludger Wößmann, Director of the ifo Center for the Economics of Education.
Business Climate in German Automotive Industry Worsens
The business climate in Germany’s automotive industry has deteriorated sharply. The sector indicator stood at -35.0 points in September, compared with -22.0 points in August. Companies rated their current business situation much worse than in August, and even worse than in June or July, when it hit its lowest level of 2026 so far. Business expectations had already plunged in August and remained at a low level in September. “The automotive industry remains mired in crisis,” notes ifo industry expert Anita Wölfl.
Business Climate in Germany’s Chemical Industry Continues to Improve
The business climate in Germany’s chemical industry improved in September for the second time in a row. The index rose to +5.5 points, up from -2.6 points in August. Companies are once again positive about the business situation, at +8.8 points. Business expectations brightened noticeably, from -15.0 up to +2.3 points. “Customers in Germany and abroad are continuing to build up their inventories and are willing to pay higher prices to do so,” says ifo industry expert Anna Wolf.
ifo Business Climate Rises (September 2026)
Business sentiment in Germany has improved. The ifo Business Climate Index rose to 89.9 points in September, up from 88.8 points in August. Companies assessed their current business situation more positively. Their expectations brightened again. The German economy continues its recovery.
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ifo Annual Meeting 2026
On June 25, 2026, we will discuss the topic “Impetus for Germany: Is a New Business Model Growing or Is It Just the State That is Growing?” at the ifo Annual Meeting.
ifo Podcast and Explanatory Videos
ifo Podcast “Economy for All”
What moves the economy? The ifo Institute podcast focuses on the most important developments in economic research and economic policy. Every month, we talk to our experts about current events in business, science, and politics and provide background information on the ifo Institute’s latest research findings.
"We Explain Economics"
What fascinates our researchers about their work? What new results can they show? In our explanatory videos "We Explain Economics", we take a look at the current research landscape and prepare the results for the wider public.