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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 Index Rises (July 2026)

Business sentiment among companies in Germany has improved. The ifo Business Climate Index rose to 86.6 points in July, up from 85.7 points in June , due to a significant improvement in expectations. However, companies were somewhat less satisfied with their current business performance. Despite the uncertain situation in the Persian Gulf, companies are less pessimistic.

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ifo Business Climate Eastern Germany: Heat Carries Through to Midsummer (July 2026)

The ifo Business Climate Index for Eastern Germany brightened somewhat in July compared the previous month. The barometer of business sentiment for the regional economy in Eastern Germany rose from 88.1  points in June to 89.1 points in July. The eastern German companies surveyed slightly lowered their assessment of current business and were at the same time noticeably more optimistic about future business.

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ifo Business Climate Index for Saxony Rises Noticeably in July (July 2026)

The ifo Business Climate Index for Saxony rose noticeably in July. The barometer of business sentiment in Saxony’s economy rose from 91.6  points in June to 93.4 points in July. The companies surveyed assessed their business situation as somewhat better than in the previous month and also noticeably raised their expectations for business in the coming months.

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Further Results of ifo Business Surveys

German Export Expectations up Only Slightly (July 2026)

Sentiment in the German export industry has improved only marginally. The ifo Export Expectations rose to -3.3 points in July, up from -3.6 points in June. “The export industry is still struggling to gain momentum,” says Klaus Wohlrabe. “Companies are hoping for a stronger boost from international sales markets.”

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Companies in Germany Cutting Fewer Jobs (July 2026)

Companies in Germany are planning to cut somewhat fewer jobs. The ifo Employment Barometer rose to 93.0 points in July, up from 92.2 points in June. “The labor market is stabilizing somewhat, but still remains in troubled waters,” says Klaus Wohlrabe. “A turnaround will require even greater economic momentum.”

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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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Companies in Germany Tend to Expect Salaries to Fall Due to the Use of Artificial Intelligence

Many companies in Germany tend to expect salaries to decline over the next five years as a result of the use of artificial intelligence (AI). Workers in particular with less than five years of professional experience can expect lower salaries, as reported by about half of the companies that already use AI. Among workers with at least five years of professional experience, around 40% expect pay cuts.

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Business Expectations in German Automotive Industry Improve Considerably

The Business Climate Index in the German automotive industry has risen significantly. The figure stood in July at -15.6 points, down from -21.6* points in June. Although companies continued to assess their business situation as just as poor as in the previous month and plan to cut more jobs, their business expectations, on the other hand, continued to rise sharply. After hitting a low of -30.7* points in April, they rose to -0.1 points in July. “The order books are filling up again somewhat, and export expectations have risen,” says ifo expert Anita Wölfl.

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Business Climate in German Retail Improves Slightly

The ifo Business Climate in Germany’s retail sector rose slightly in July to -28.7 points, up from -32.4 points in June. Companies’ assessments of their current business situation were somewhat less pessimistic than in the previous month. Business expectations improved somewhat but remain predominantly pessimistic. “Although the business climate for retailers has improved for the third time in a row, sentiment among companies remains worse than it was before the conflict in Iran escalated at the end of February,” says ifo industry expert Patrick Höppner.  Many companies are very cautious in their assessment of business prospects for the rest of the year.

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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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