German business morale stagnates in Feb. ’25

German business morale remained subdued in February as the ifo Business Climate Index held steady at 85.2, highlighting persistent skepticism among companies.While current business conditions worsened slightly, expectations showed some improvement, signaling cautious optimism.

Manufacturing sentiment improved as firms grew less pessimistic about the months ahead, and order books stabilised.

In trade, confidence rose, with wholesale and retail businesses reporting a better outlook. However, sentiment in the service sector declined, driven by increased skepticism in transport and logistics.

The construction sector saw improved expectations, but weak order volumes remained a key concern. The German economy continues to wait for clearer signs of recovery.

Attribution: Amwal Al Ghad English

Subediting: Y.Yasser