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flag German business confidence hit 88.6 in Feb 2026, highest since Aug, signaling recovery amid stimulus and stronger orders, despite ongoing risks.

flag German business confidence rose to 88.6 in February 2026, the highest level since August, according to the Ifo Institute, surpassing expectations and signaling early signs of economic recovery. flag The increase was driven by improved sentiment in current conditions and future outlook, with gains across manufacturing, services, and construction, though trade remained weak. flag The rebound followed fiscal stimulus, stronger industrial orders, and a rise in PMI data, but risks persist due to renewed U.S. tariff threats, a stronger euro, and winter weather.

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