Central Banks

German Business Outlook Unexpectedly Hits Highest Since 2022

WATCH: “Companies are telling us that the current business situation is really flat,” Ifo President Clemens Fuest says.Source: Bloomberg

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By Mark Schroers

August 25, 2025 at 8:14 AM UTC

Updated on

August 25, 2025 at 9:03 AM UTC

Confidence among German firms unexpectedly improved to the highest since 2022 after the European Union struck a trade deal with the US, despite some criticizing higher tariffs.

An expectations index by the Ifo institute rose to 91.6 in August from a revised 90.8 in July. Economists in a Bloomberg survey had expected a decline. A measure of current conditions worsened slightly.