Abstract Despite the scientific progress in drought detection and forecasting, it remains challenging to accurately predict the corresponding impact of a drought event. This is due to the complex relationships between (multiple) drought indicators and adverse impacts across different places/hydroclimatic conditions, sectors, and spatiotemporal scales. In this study, we explored these relationships by analyzing the impacts of the severe 2018–2019 central European drought event in Germany. We first computed the standardized precipitation index (SPI), the standardized precipitation evaporation index (SPEI), the standardized soil moisture index (SSMI) and the standardized streamflow index (SSFI) over various accumulation periods, and then related these indicators to sectorial losses from the European drought impact report inventory (EDII) and media sources. To cope with the uncertainty associated with both drought indicators and impact data, we developed a fuzzy method to categorize them. Lastly, we applied the method at the region level (EU NUTS1) by correlating monthly time series. Our findings revealed strong and significant relationships between drought indicators and impacts over different accumulation periods, albeit in some cases region-specific and time-variant. Furthermore, our analysis established the interconnectedness between various sectors, which displayed systematically co-occurring impacts. As such, our work provides a new framework to explore drought indicators-impacts dependencies across space, time, sectors, and scales. In addition, it emphasizes the need to leverage available impact data to better forecast drought impacts.