Overview

• The index declined from 88.9 in August to 87.7 in September, its first drop after six consecutive increases.
• Ifo reported weaker assessments of current business conditions alongside markedly more pessimistic expectations for the months ahead.
• The closely watched survey of about 9,000 firms confounded a Reuters poll that had forecast a rise to 89.3.
• Ifo president Clemens Fuest said hopes for an economic recovery have taken a setback.
• The reading follows a 0.3% GDP contraction in the second quarter, with leading institutes projecting just 0.2% growth in 2025 and a stronger pickup in 2026–27.