Enhancement in the digital marketplace's profitability
The digital economy in Germany is showing signs of optimism, with the Bitkom-ifo Digital Index increasing by 3.3 points compared to July 2025. The Index, which measures the business climate for the IT and telecommunications sector, has returned to positive territory at +1.9 points on September 1, 2025.
The current business situation in the digital economy improved to 6.9 points at the end of August 2025, up from 0.4 points in July. This improvement is a positive indication of the sector's growth and potential.
However, the overall economy's business climate, as reported by the ifo Institute, remains below the zero line at -5.5 points. Business expectations in the overall economy have improved slightly, with a decrease from -9.7 points in July to -7.8 points in August 2025.
Dr. Ralf Wintergerst, Bitkom President, emphasizes the need for an ambitious modernization agenda to boost confidence in both the digital economy and the IT and telecommunications sector. He suggests that much of the confidence in these industries' future depends on the federal government reducing burdens and regulation.
According to Dr. Wintergerst, the IT and telecommunications sector is running well for most companies, but there's still a lack of confidence that this will continue until the end of the calendar 2025. Business expectations for the IT and telecommunications sector for the rest of the calendar 2025 remain below the zero line, currently at -3.1 points, the same as last month.
Similarly, business expectations for the digital economy for the rest of the calendar 2025 remain below the zero line, currently at -3.1 points. This indicates a cautious outlook for the sector, despite its current improvement.
The German federal government is expected to reduce burdens and regulations to enable an ambitious modernization agenda for the IT and telecommunications sector. However, the detailed design and concrete measures of this agenda remain to be further developed and clarified.
For more detailed information, the Bitkom-ifo Digital Index report is available for download as a PDF.
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