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German Business Confidence Index Climbs to 88.4, Highest in Over a Year

Service sector optimism — matched by record construction forecasts — drove sentiment higher under persistent global uncertainties

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Passanten gehen am Tag nach Weihnachten mit Einkaufstüten über die Frankfurter Einkaufsmeile Zeil (Aufnahme mit längerer Verschlusszeit).
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Die Stimmung der Unternehmen in Deutschland hat sich im Juni erneut verbessert. Insbesondere die Erwartungen der befragten Unternehmer hätten sich verbessert, erklärte das Münchener Ifo-Institut.

Overview

  • The Ifo business climate index rose to 88.4 in June from 87.5 in May, marking its strongest reading since June 2024.
  • Business leaders reported more optimistic expectations while assessments of current conditions improved only marginally.
  • The service sector saw notable gains in both current situation scores and future outlooks, and construction forecasts reached their best level since February 2022.
  • Manufacturing confidence edged up despite weaker ongoing activity, and wholesale trade drove gains even as retail sentiment slipped.
  • Analysts warned that limited post-June 13 responses may understate the impact of the Middle East escalation and that rising oil prices and US trade tensions could temper the nascent optimism.