15th German Corporate Conference — Key Takeaways

This week brought a wave of positive data surprises in Germany, with federal expenditure reaching €50.0bn in August, the Euro Area composite PMI rising 1.1pt to 53.1 (its highest in 41 months), and the German Ifo business climate index surprising to the upside at 89.9, a fifth consecutive monthly increase. Against this backdrop, Goldman Sachs hosted its 15th German Corporate Conference in Munich, bringing together more than 170 corporates, and highlights five main takeaways: (1) Germany's fiscal pivot is supporting growth, but corporate transmission remains gradual, with the €500bn investment programme and higher defence spending (procurement set to reach roughly €120bn, about 2% of GDP) providing a fiscal impulse of around 0.7pp of GDP in 2026 and 0.5pp in 2027;