Germany’s Ifo index rose for a sixth consecutive month in October, reaching 90.2 from 89.9 in September and marking its highest level in more than three years. The survey continues to point to a resilient economy, even as the current assessment shows early pressure from higher energy prices and interest rates, while expectations have improved.
Fiscal Stimulus Remains a Key Growth Driver
The latest reading keeps the focus on fiscal stimulus as a near-term driver for growth momentum, despite the government facing difficulties meeting spending and investment targets.
Prospects of Modest Cyclical Rebound and GDP Outlook
The index is consistent with a modest cyclical rebound rather than a structural recovery, and it sets the stage for the first estimate of Germany’s third-quarter GDP growth due on Friday, with the economy tracking towards its best annual growth performance since 2022.
