FX.co ★ German Business Sentiment Plunges to Six-Year Low

Germany’s Ifo Business Climate Index fell by 1.9 points to 84.4 in April 2026, its lowest reading since May 2020 at the height of the COVID-19 pandemic, and below market expectations of 85.5. The decline was driven primarily by a sharp deterioration in business expectations, which dropped to 83.3 from 85.9, underscoring mounting concerns over the impact of the prolonged Middle East conflict on Germany’s fragile economic recovery. Assessments of the current business situation also weakened, with the corresponding sub-index slipping to 85.4 from 86.7.