Germany’s Ifo Business Climate Index edged up to 90.2 in October 2026, its highest level since May 2023, slightly exceeding market expectations of 90.0. The improvement suggests that business sentiment in Europe’s largest economy continues to strengthen despite an energy price shock that has pushed fuel costs to record highs. The expectations index rose to 91.6 from 90.4, while the current conditions index declined to 88.8 from 89.5, indicating a more optimistic outlook despite deteriorating assessments of present economic conditions.