Germany’s Business Climate Index remained steady at 85.2 points in February 2025, signaling cautious sentiment among businesses. According to the ifo Institute, the current business situation slightly declined to 85.0 from 86.0 in January. However, business expectations improved, rising to 85.4 from 84.3. This shift reflects a moderate sense of optimism about the future despite current challenges.
The manufacturing sector showed signs of optimism as order books stabilized, contributing to a more favorable outlook for the coming months.
In contrast, the service sector, particularly in transport and logistics, saw a decline in both current business conditions and expectations.
This sector’s performance has remained weak, reflecting ongoing concerns about economic uncertainty.
The trade sector experienced a positive shift, with businesses in both wholesale and retail reporting improved conditions and more optimistic expectations. Overall, the steady index indicates that while Germany’s economy is still facing difficulties, there is cautious optimism as businesses await further developments.
The economy remains in a “wait-and-see” mode, with businesses monitoring upcoming trends before making significant decisions.
The mixed results across sectors underscore a complex economic landscape as Germany navigates the challenges of global uncertainty.
