Home›Forex›Central Banks›Commerzbank points to stronger German Ifo business cli…

Commerzbank points to stronger German Ifo business climate in August

The Ifo index rose by 2.1 points to 88.8, and Commerzbank links the improvement to stronger foreign demand and a pickup in government spending ahead.

Reported · Written up by our desk · Central Banks

Commerzbank economist Dr. Ralph Solveen said Germany’s Ifo Business Climate Index improved in August, rising from 86.7 to 88.8, with both current conditions and expectations strengthening.

FXStreet reports Solveen attributed the gain to stronger demand from abroad, rising government spending, and improving sentiment, even as challenges remain such as weak private investment and structural issues.

Despite these headwinds, he sees upside risks to Commerzbank’s 2026 forecast for German GDP growth of 1.0%, arguing the economy can keep picking up in coming months.

Solveen also said the improved business outlook suggests the negative effects of higher energy prices and the impact of the extreme drought may weigh less on activity in the third quarter than previously assumed.

More like this

Sources