- Prior 88.6; revised to 88.4
- Current conditions 86.7 vs 86.0 expected
- Prior 86.7
- Expectations 86.0 vs 86.0 expected
- Prior 90.5; revised to 90.2
German business sentiment falls in March and that is not all too surprising considering the Middle East developments. The outlook/expectations index also dips back lower, falling to its weakest since February 2025. That as higher energy prices are going to have a material impact on the manufacturing side of things. And we’re already seeing early evidence of that from the PMI data this week via input cost inflation.
That’s going to be a worrying signal for the German economy, especially now that this may very well dash the recovery in the manufacturing sector over the last few months.
Coming into this year, there was much hope for Europe’s largest economy as the manufacturing sector showed signs of a stronger rebound. But now, everything looks to be changing as we have to wait and see what the impact will be from the US-Iran conflict.
