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Improvement in the digital business sector

Digital Index of IFO-Bitkom Leaves Negative Zone After 12 Months

Improvement observed in digital commerce
Improvement observed in digital commerce

Improvement in the digital business sector

In a mixed economic landscape, the IT and telecommunications sector is showing signs of resilience. According to the latest data, the current business situation for many companies in this sector stands at an impressive 6.9 points at the end of August, marking a significant improvement from 0.4 points in July. This positive trend has led Dr. Ralf Wintergerst, President of Bitkom - Germany's top digital industry association, to acknowledge that business is good in most IT and telecommunications companies. However, he emphasizes a lingering lack of confidence that this positive trajectory will continue until the end of the year.

Dr. Wintergerst, a key figure in the digital economy, actively promotes digital marketing, cybersecurity, AI, data technologies, and digital transformation in key sectors. His comments underscore the sector's strength, while also highlighting the need for sustained confidence and a favourable economic environment.

The overall economy, however, is still facing challenges. The business climate, as reported by the ifo Institute, remains below zero at -5.5 points. The business situation for the economy as a whole is assessed at -3.1 points, the same as last month. Despite this, there has been a slight improvement in business expectations, currently at -7.8 points in August, compared to -9.7 points in July.

The Bitkom-ifo Digital Index, a key indicator for the digital economy, has returned to positive territory, standing at +1.9 points as of September 1, 2025. This represents a significant increase of 3.3 points compared to July. However, business expectations for the rest of the year in the IT and telecommunications sector remain at -3.1 points, showing that while the sector is performing well, there is still uncertainty about the future.

The future of the economy, according to Dr. Wintergerst, depends on whether the federal government reduces burdens and regulation and presents an ambitious modernization agenda. This could provide the necessary boost to restore confidence and drive further growth in both the IT and telecommunications sector and the overall economy.

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