Business sentiment in Germany did not improve in February

By: Trademagazin Date: 2025. 02. 24. 10:28

Business sentiment in Germany in February proved weaker than expected, according to a survey by the ifo Institute for Economic Research, primarily due to a worsening perception of the current business environment, although the economic actors surveyed assessed their prospects for the next few months more favorably.

The business sentiment index of the ifo Institute for Economic Research at the University of Munich (ifo Institut – Leibniz-Institut für Wirtschaftsforschung an der Universität München e.V.) for February came to 85.2 points, the same as the previous month, instead of the expected increase of 85.9 points.

The perception of the outlook improved among economic actors, with the indicator rising to 85.4 points, higher than the expected 85.2 points, from 84.3 points in January. However, the perception of the current situation deteriorated among German companies, with the indicator falling to 85.0 points from 86.0 points in January instead of the expected increase of 86.5 points.

The business environment in manufacturing improved. The current situation was assessed as slightly worse. However, companies were noticeably less pessimistic about the coming months. The development of orders stabilized.

The index in the service sector decreased. Companies were less satisfied with the current situation. Expectations also became somewhat clouded. Skepticism increased especially in the transport and logistics sector.

The business climate in trade improved, which was mainly due to the improvement in expectations. Companies also assessed their current economic situation somewhat better, and the improvement was observed in both wholesale and retail trade.