Germany’s Ifo Business Climate index rose from 87.5 to 88.4 in June, modestly above expectations. Expectations Index jumped to 90.7 from 88.9, while Current Assessment Index edged up only slightly from 86.1 to 86.2. Ifo said the economy is “slowly building confidence”.
Sector details showed the clearest momentum in services, where firms raised expectations significantly, especially among business-related providers. Manufacturing also saw better sentiment ahead, though order books remain under pressure. Construction extended its recovery trend, with expectations hitting the highest level since early 2022. Wholesale trade led the modest rebound in commerce, but retail conditions slipped again.
