ifo Business Climate Index Rises (March 2025)

Sentiment among companies in Germany has brightened. The ifo Business Climate Index rose to 86.7 points in March, up from 85.3 points in February. Companies were more satisfied with their current business situation, and their expectations rose noticeably. German businesses are hoping for a recovery. 

In manufacturing, the index rose significantly. In particular, expectations have become noticeably less skeptical. Assessments of the current situation also improved. However, order books saw a slight decrease.

In the service sector, the business climate picked up. Companies rated their current situation somewhat more positively, and expectations became clearly more optimistic. Architectural and engineering firms, in particular, were increasingly hopeful.

In trade, the index rose once more. Expectations among traders were notably less pessimistic, and firms assessed their current business somewhat better.

In construction, the business climate brightened. Companies evaluated their current situation somewhat more positively. Expectations improved but remain highly skeptical. A lack of orders continues to be the greatest challenge for the construction industry.


Clemens Fuest

President of the ifo Institute