German Business Morale Exceeds Expectations in September, Ifo Finds
German Business Climate and Economic Indicators
Business Morale and Ifo Index Results
BERLIN, Sept 24 (Reuters) - German business morale rose more than expected in September, a survey showed on Thursday, signalling that Europe's largest economy is weathering an energy price shock that has pushed fuel costs to record highs.
The Ifo institute said its business climate index rose to 89.9 in September from 88.8 in August.
Analysts polled by Reuters had forecast an increase to 89.0.
Supporting Evidence for Economic Recovery
The reading is the third piece of evidence this week that a long-awaited recovery is taking hold.
Recent Economic Data and Forecasts
It follows flash PMI data on Wednesday showing German business activity expanding at its fastest pace in almost a year.
Also, the country's five leading economic institutes presented a joint autumn forecast that raised 2026 growth expectations to 1.3% from 0.6%.
Details on Ifo Expectations and Current Situation
Ifo's gauge of expectations rose to 90.4 from 89.1 in August, while companies' assessment of their current situation improved to 89.5 from 88.5, the institute said.
Political Implications and Government Response
Any pickup would be welcome for Chancellor Friedrich Merz, whose conservatives scored their worst state election result since 1949 in Mecklenburg-Western Pomerania on Sunday as voters punished the government in part because of rising living costs.
Merz's government has decided to cut fuel taxes by €0.17 ($0.19) a litre from October 1 until the end of the year.
(Reporting by Kirsti Knolle, editing by Thomas Seythal)
