German Business Confidence Rises for Sixth Straight Month as Ifo Index Hits 90.2 in October

Germany's ifo Business Climate Index rose to 90.2 points in October from 89.9 in September, its sixth consecutive monthly gain, the Munich-based Institute for Economic Research said Monday. The reading signals continued economic resilience despite mounting global risks. Manufacturing drove the improvement, with both the current-situation and expectations components turning positive for the first time in more than three years. Incoming orders rose, prompting firms to plan production expansions. Services confidence weakened on current conditions but expectations improved, led by IT service providers. Trade was unchanged, with wholesale outperforming retail, while construction improved. ING head of global macro Carsten Brzeski flagged clear downside risks: war in the Middle East, potential escalation after the US mid-term elections, elevated oil prices and higher gas prices in the coming heating season. Low water levels on key transport routes could also disrupt supply chains. Economists say longer-term growth depends on addressing bureaucracy, high energy costs and weak competitiveness.