German self-employed business climate improves for fourth month

The business climate for self-employed individuals and micro-enterprises in Germany improved for the fourth consecutive month in August 2026. According to the Jimdo-ifo business climate index, the index rose from -22.6 points in July to -19.7 points in August.

While previous improvements were driven primarily by less pessimistic expectations, the recent uptick was also supported by respondents evaluating their current business situation less negatively. Despite these positive signals, ifo expert Katrin Demmelhuber noted that the situation remains challenging.

In the retail sector, the business climate index also increased, though it remains at a low level. This improvement was attributed to better-performing businesses, although retailers remain skeptical regarding future expectations. Uncertainty regarding business development has decreased slightly, with 32.2 percent of respondents reporting difficulty assessing their future, compared to 38.8 percent in April.

Service providers also saw an improvement in sentiment. Self-employed individuals in this sector were less likely to report dissatisfaction with their current situation and revised both their business and turnover expectations upward. IT service providers and management consultants showed increased confidence, whereas the situation remains difficult for the hospitality and creative industries.