This reflects growing optimism, particularly in future expectations, which climbed to 90.7 from 89, continuing an upward trend since February. The assessment of the current situation remained largely stable, edging up to 86.2 from 86.1.
In manufacturing, sentiment stabilised, with companies expressing greater optimism about the months ahead despite continued dissatisfaction with order books and weaker current performance, ifo said on its website.
In the trade sector, conditions improved as traders reported better business and a less pessimistic outlook. Wholesale trade led the recovery, though retail sentiment dipped slightly.
The overall ifo business climate balance improved to -6.7 from -8.7 in May, marking the best reading since mid-2024. Manufacturing sentiment held at -13.7, steadying after a long decline, while the trade sector rose to -19.2 from -20.3. Though still below pre-2024 levels, the data points to a cautiously improving economic outlook in Germany.
ALCHEMPro News Desk (SG)
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