Germany’s Ifo business climate index rose modestly in August, climbing to 89.0 from 88.6 and beating expectations of 88.3. The improvement was driven by stronger expectations, with the sub-index rising to 91.6 from 90.7. Current assessment slipped from 86.5 to 86.4. Ifo said sentiment among companies has “brightened slightly,” but warned that the recovery “remains weak.”
Sector details painted a mixed picture. Manufacturing sentiment deteriorated further from -11.9 to -12.2, with firms less satisfied about current conditions and order intake still showing no signs of growth, though capital goods makers saw noticeable improvement.
Services dipped from 2.8 to 2.6 as expectations turned cautious despite a stronger current situation. Trade slumped from -20.3 to -21.4 on weaker performance. Construction slipped from -14.3 to -15.3, as firms were less satisfied with current conditions even as their outlook improved.
