Germany’s Ifo Business Climate Index rose to 89.9 in September 2026, up from 88.8 in August and comfortably above the market expectation of 89.0. The reading marked the highest level since May 2023 and the fifth consecutive monthly increase, pointing to a gradual improvement in business sentiment across Europe’s largest economy. Both components of the index strengthened during the month. The expectations index climbed to 90.4 from 89.0, indicating greater optimism about economic prospects in the months ahead. At the same time, the current conditions index increased to 89.5 from 88.5.