German businesses are experiencing high levels of uncertainty about their future development, according to the latest Ifo Institute survey. In October 2025, 77.8% of companies reported difficulty in forecasting their business outlook, up from 75.4% in September and 72.2% in June.
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Klaus Wohlrabe, head of Ifo surveys, noted that companies are exposed to multiple geopolitical risks and criticised the lack of clear signals from policymakers during the so-called 'autumn of reforms'. The survey highlights that uncertainty is most acute in the industrial sector, where nearly 90% of companies report challenges in planning. Retailers reported 85.3% uncertainty, while the construction and service sectors were lower at 72.7% and approximately 70%, respectively.
Historical comparisons show that uncertainty remains elevated since the Covid-19 pandemic, with pre-2020 levels significantly lower across all sectors. In industry, previous lows were 74.1%, in services 46.2%, retail 67.5%, and construction 32.6%.
The findings indicate that German companies continue to struggle with planning and investment decisions amid an unstable economic and political environment. Experts suggest that the implementation of infrastructure packages could reduce uncertainty, though for now, firms remain cautious and hesitant to make long-term commitments.
Source: www.moebelmarkt.de
