FX.co ★ German Business Morale Hits 8-Month High

In March 2025, Germany's Ifo Business Climate Index increased to 86.7, reaching its highest point since July and meeting market expectations. This uplift in business sentiment is attributed to companies expressing increased optimism about the future (87.7 compared to 85.6 in February). The positive outlook follows the German parliament's approval of government initiatives designed to boost defense spending by relaxing strict debt regulations and setting up a significant infrastructure fund to bolster Europe’s largest economy. Furthermore, companies' evaluation of the existing business environment also showed improvement (85.7 against 85.0).