German Ifo business climate index improves for third consecutive month in July

The entire ifo Business Climate Report (pdf)

Business sentiment among companies in Germany has improved, according to the German cconomic research institute ifo. The ifo Business Climate Index rose to 86.6 points in July, up from 85.7 points in June , due to a significant improvement in expectations. However, companies were somewhat less satisfied with their current business performance. Despite the uncertain situation in the Persian Gulf, companies are less pessimistic.

In manufacturing, the index rose noticeably. Expectations, in particular, saw a significant boost. Assessments of the current situation were somewhat less favorable. Demand picked up, and material shortages eased.

In the service sector, the business climate improved. Service providers were less skeptical about the coming months. However, they assessed the current business situation as slightly worse. Sentiment among tour operators has picked up.

In trade, the indicator rose once again. Companies were somewhat more satisfied with their current business. Expectations were also less pessimistic. Retailers, in particular, were less concerned about their future performance.

In construction, the index picked up. Both assessments of the current situation and expectations improved. Fewer companies reported a lack of orders.

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