| Consensus | Consensus Range | Actual | Previous | |
| Business Climate | 86.8 | 84.9 to 88.2 | 88.6 | 88.6 |
| Current Conditions | 86.4 | 86.0 to 87.2 | 86.7 | 86.7 |
| Business Expectations | 88.0 | 87.0 to 90.5 | 86.0 | 90.5 |
Highlights
Germany's Ifo Survey showed steady conditions but sharply weaker business expectations in March. The survey's business climate and current conditions index were unchanged at 88.6 and 86.7 respectively, but the business expectations index fell from 90.5 in February to 86.0 in March. This is the lowest level since February 2025.
Market Consensus Before Announcement
Erosion in confidence expected with the business climate index down to 86.8 in March from 88.6 in February.
Definition
Ifo is an acronym from Information and Forschung (research). Published by Munich's Ifo Institute, the Business Climate Index is closely watched as an early indicator of morale in German industry. In addition to overall gauge of sentiment, data are provided on its two components, current conditions and expectations. As a forward looking indicator, the latter is normally seen as the more important. Ifo surveys more than 9,000 enterprises in manufacturing, services, construction, wholesaling and retailing and a separate estimate of sector confidence is supplied for each.
Description
The headline index has a good correlation with developments in overall GDP and so has a major influence in shaping views on how the national economy is performing. The main focus is the expectations index.