The IFO business confidence index in Germany rose in September to 89.9, up from 88.8 in August, exceeding market expectations of 89.1 and marking its highest reading since 2023. The index, which surveys nearly 9,000 German companies, reflects increased optimism among businesses regarding the current situation and improved expectations for the coming months.

Specifically, the current situation index rose to 89.5 from 88.5 in August, while the expectations index climbed to 90.4 from 89.0 in August.

At the sector level, the manufacturing index fell to -2.8 from -4.2 in August, while the services index rose to 0.7 from -2.1. The construction sector index declined to -17.0 from -16.9.