German Business Outlook Improves Much More Than Expected

  • Ifo expectations index jumps to 87.5, economists saw 84.7
  • ‘German economy glimpses light on the horizon,’ Fuest says

Forecasters are counting on Germany’s consumers to drive a modest recovery in the coming months.

Photographer: Krisztian Bocsi/Bloomberg
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Germany’s business outlook improved much more than anticipated — feeding hopes that the economy will recover from a malaise that’s turned it into the euro zone’s laggard.

An expectations gauge by the Ifo institute rose to 87.5 in March from a revised 84.4 the previous month. That’s the highest since May 2023 and exceeds the 84.7 median forecast in a Bloomberg survey. A measure of current conditions also rose more than expected.