The IFO business confidence index in Germany rose to 90.2 in October, up from 9.89 in September, exceeding market expectations of 90.0 and marking its highest reading since 2023. The index, which surveys nearly 9,000 German companies, reflects companies’ optimism about the outlook for the coming months, while the current situation is perceived as slightly worse.

Specifically, the current situation index slowed to 88.8 from 89.5 in September, while the expectations index rose to 91.6 from 90.4 in September.

At the sector level, the manufacturing index rose to 1.2 from -2.4 in September, while the services index fell to 1.2 from 0.7 in September, and the construction index declined to -15.5 from -17.0.