German business sentiment rises slightly in July: ifo

Manufacturing sentiment strengthened in July, with the balance improving from -13.9 to -11.8. Companies assessed their current situation as noticeably better, with expectations continuing to brighten. Yet, incoming orders still lack momentum, and capacity utilisation increased only marginally from 77 to 77.2 per cent, according to the ifo Institute.

“In trade, the index weakened somewhat due to more pessimistic expectations. Although the current situation improved slightly, it remained unsatisfactory,” said Clemens Fuest, president of the ifo Institute. The sector's balance declined to -20.2 in July from -19.2 in June.

Overall, the assessment of the current situation improved to 86.5 from 86.2, while business expectations edged up to 90.7 from 90.6, continuing their steady upward trend since the start of 2025.

ALCHEMPro News Desk (SG)