FX.co ★ German Business Sentiment Plummets in March

Germany’s Ifo Business Climate Index fell to 86.4 in March 2026, its lowest level since February 2025, as the escalating conflict in the Middle East weighed on economic sentiment. Although the reading slightly exceeded market expectations of 86.1, it represented a sharp drop from February’s revised figure of 88.4. The decline was largely driven by a marked deterioration in business expectations, which slumped to 86.0 from 90.2, as the war’s fallout intensifies the risks facing Germany’s already fragile recovery. By contrast, the assessment of current conditions was unchanged at 86.7.