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Business Confidence Index Trend
Monthly BCI readings compared to averages.
Primary Sources
German Business Sentiment Collapses to Lowest Since 2020 as War Hits ...
The Frankfurt skyline. German business sentiment has dropped to a near six-year low. kai pfaffenbach/ReutersGerman business confidence sank to a near six-year low as firms counted the cost of soaring energy prices driven by the conflict in the Middle East.The Ifo Institute said Friday that its business-climate index, based on around 9,000 monthly responses from businesses, fell to 84.4 in April from 86.3 in March.Copyright ©2026 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
German Business Sentiment Collapses to Lowest Since 2020 as War Hits ...
By Ed Frankl German business confidence sank to a near six-year low as firms counted the cost of soaring energy prices driven by the conflict in the Middle East. The Ifo Institute said Friday that its business-climate index, based on around 9,000 monthly responses from businesses, fell to 84.4 in April from 86.3 in March. That marked the lowest level since May 2020, when lockdowns and restrictions hit businesses as the Covid-19 pandemic spread worldwide. A consensus of economists polled by The Wall Street Journal last week expected a smaller decline, to 85.5. The German economy is "back in crisis mode" as the index drops to pandemic levels, exposing how Germany is one of Europe's largest net importers of energy, ING's global head of macro, Carsten Brzeski, said. However, as the conflict shifts from a pure energy shock toward a broader supply-chain shock, the German economy is, as in the pandemic period, once again at the centre of a global disruption, he added. Companies were increasingly reporting more pessimistic business expectations for the coming months, Ifo President Clemens Fuest said. Sentiment fell in the four sectors measured by Ifo--manufacturing, services, trade and construction. Manufacturers increasingly reported bottlenecks, while retailers grew concerned that consumers will be more reticent due to rising inflation, it said. "The logistics industry in particular is under pressure. The outlook there is grim," Fuest added. Business sentiment had improved toward the end of 2025, as businesses shrugged off the impact of U.S. tariffs and looked to much-anticipated fiscal stimulus from the German government. Lawmakers last year pledged more than $1 trillion in investments for defense and infrastructure. Dirk Schumacher, chief economist at state-owned KfW bank, said that until the war, the recovery in business confidence was reflected primarily in expectations, and therefore more a matter of hope than something reflected in current data. "With the collapse of expectations over the past two months, the upswing has thus been reset to zero," he said in a note. While that doesn't exclude a recovery this year--driven primarily by the stimulus--it requires the reopening of the Strait of Hormuz soon and a gradual fall in energy prices, he said. The higher energy costs and geopolitical uncertainty are already scarring the economy. German private-sector activity slipped into contraction for the first time in almost a year this month, as falling...
German Business Sentiment Hits Lowest since 2020
TEHRAN (Tasnim) - German business morale fell more than expected in April, posting the lowest reading since May 2020, as the US-Israeli war of aggression against Iran threatens the long-awaited recovery of Europe's biggest economy.
German Business Sentiment Falls in April to Lowest Level Since 2020
The Ifo institute said on Friday its business climate index fell to 84.4 in April from 86.3 in March, posting the lowest reading since May 2020.
