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Warning About Fraudulent Calls Allegedly on Behalf of the ifo Institute

There has been a recent increase in fraudulent phone calls in which callers falsely claim to be acting on behalf of the ifo Institute. The ifo Institute never requests payment for participation in surveys.

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Warning About Fraudulent Calls Allegedly on Behalf of the ifo Institute

Business Climate Index

Business Climate
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ifo Business Climate Rises (October 2026)

Business sentiment in Germany has improved. The ifo Business Climate Index rose to 90.2 points in October, up from 89.9 points in September. This was due to more optimistic expectations. Companies, however, assessed their current situation as slightly worse. The economic recovery is continuing.

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Image for News: ifo Business Climate Index, ifo Business Survey, October 2026
ifo Business Climate Eastern Germany Improves Again (October 2026)

The ifo Business Climate Index for Eastern Germany brightened again somewhat in October compared to September. The barometer of business sentiment for the regional economy in Eastern Germany rose from 91.2 points in September to 92.2 points in October. The eastern German companies surveyed assessed the current business situation as marginally better and at the same time were significantly more optimistic about their business expectations.

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ifo Business Climate Index Saxony Brightens Significantly in October (October 2026)

The ifo Business Climate Index for Saxony rose considerably in October. The barometer of business sentiment in Saxony’s economy went up from 91.3  points in September to 96.9 points in October. The companies surveyed reported a considerably better business situation than in the previous month and significantly raised their expectations for future business.

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Further Results of ifo Business Surveys

ifo Export Expectations in Germany Rise (October 2026)

Sentiment among German exporters improved considerably in October. The ifo Export Expectations rose to 12.2 points, up from 9.0 points in September. That’s the highest level since February 2022. “The automotive industry in particular has significantly revised its export outlook upward,” says Klaus Wohlrabe, Head of Surveys at ifo. “The signs also point to export growth in many other industrial sectors.”

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Companies in Germany Looking to Cut Fewer Jobs (October 2026)

Companies in Germany are planning to cut somewhat fewer jobs overall. The ifo Employment Barometer rose slightly in October to 95.5 points, up from 95.1 points in September. “Companies are becoming somewhat more cautious when it comes to cutting jobs. However, the upturn still lacks the strength for a broad expansion of the workforce,” says Klaus Wohlrabe, Head of Surveys at ifo.

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Just Under Half of Self-Employed in Germany Complain of Lack of Orders

About one in two self-employed in Germany (47.3%) report a lack of orders, according to the latest ifo survey. “Many self-employed feel that their customers are holding back on awarding projects,” says ifo expert Katrin Demmelhuber. “At the same time, private consumer demand remains subdued.”

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Material Shortages in the German Electronics Industry Worsen

The German electronics industry is finding it increasingly difficult to stock up on intermediate products. Among manufacturers of data processing equipment and electronic and optical products, 41.5% of companies reported bottlenecks in October, up from 37.8% in September. “The supply of materials is becoming a problem in parts of the electronics industry,” says Klaus Wohlrabe, Head of Surveys at ifo. “A lack of intermediate products can slow down production particularly in an industry with strong demand.”

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Self-Employed in Germany Still Under Pressure

The order shortage among the self-employed continues, with almost one in two respondents (45.7%) reporting a lack of orders. “Both companies and private customers are holding back. That particularly affects the self-employed,” says ifo expert Katrin Demmelhuber. “A noticeable uptick in business is still a long way off.”

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Sentiment in the German Automotive Industry Once Again Improves Significantly

The Business Climate Index in the German automotive industry once again improved significantly in October. The figure stood at -4.1 points, up from -33.2* points in September. Companies assessed their business situation as better than in the previous month and are also less pessimistic about the coming months. “However, the automotive industry is still not out of the woods, as the sharp monthly fluctuations in the business climate indicate a very high level of uncertainty in the sector,” says ifo industry expert Anita Wölfl.

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ifo Business Surveys: Further Results

Other Surveys

Special Fund Under Scrutiny: Economists Express Doubts

In February 2025, immediately after Germany’s Bundestag election, the old Bundestag passed an amendment to the Basic Law. In addition to exempting defense spending from the debt brake, it also envisages setting up a special fund for infrastructure and climate neutrality. The special fund has a term of twelve years and covers credit authorizations amounting to EUR 500 billion, which are not counted toward the debt brake. 

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Economic Experts Survey: Experts Expect Inflation to Remain High

How are economists’ expectations for future price developments evolving world-wide? How is the transition to a new inflation regime reflected in experts’ inflation expectations? In the Q2 2025 wave, we examine economists’ inflation expectations at a global level. The result: Expectations on both short-run and long-run inflation rates remain relatively unchanged at the global level.

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