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In a recent discussion about the overall economy, the business climate took centre stage, but the digital economy was left out of the conversation. However, a separate report from Bitkom-ifo sheds light on the digital economy's performance.
The Bitkom-ifo Digital Index, a key indicator of the digital economy's health, saw a significant improvement in August 2025. Compared to July, the Index increased by 3.3 points, moving into positive territory at +1.9 points. This positive shift indicates a more optimistic outlook for businesses in the digital sector.
Despite this improvement, the business expectations for the remainder of the year in the IT and telecommunications sector have not yet returned to above the zero line. They currently stand at -3.1 points, the same as in the previous month.
In stark contrast, the business climate for the overall economy remains below the zero line at -5.5 points. This means that businesses in the traditional economy are less optimistic than their digital counterparts.
The current business situation for many companies in the IT and telecommunications sector is 6.9 points at the end of August 2025, a marked improvement of 6.5 points compared to the previous month. Leading the charge are companies like Nvidia, Microsoft, HERO Software, and KNIME, which have seen significant revenue growth driven by AI and cloud computing, as well as software innovations.
However, it's important to note that the business situation for the overall economy remains stagnant, assessed at -3.1 points, the same as in the previous month.
While the business expectations for the overall economy improved slightly from July (-9.7 points to -7.8 points), the Bitkom-ifo Digital Index shows that business expectations for the remainder of the year in the digital economy sector are still below the zero line, just as they were in the previous month.
This disparity between the digital and traditional economies underscores the importance of continued focus and investment in the digital sector as we move forward.
