1103 GMT - The sharp worsening in March's Ifo survey reflects German companies' legitimate concerns about the Iran war, Commerzbank's Joerg Kraemer says in a note. The headline business-climate index fell to 86.4 in March, from 88.4 in February, with all major sectors affected. The expectations index, which gauges the outlook for the six months ahead, plummeted to 86.0 from 90.2. "If the war in the Middle East and the closure of the Strait of Hormuz do not end quickly, the economic damage signaled by today's slump in Ifo business expectations will eventually materialize," Kraemer says. In that case, little of the economic upswing economists harbored recently would remain. But if the war ends in a few days, Ifo's index would recover in April, he adds. (edward.frankl@wsj.com)
(END) Dow Jones Newswires
March 25, 2026 07:04 ET (11:04 GMT)
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