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.