The ifo Business Climate Germany Index improved 0.2 pts to 86.9, above expectations of an 85.2 reading and the highest since July 2024.

• The Situation index improved 0.7 pts to 86.4, the highest since August 2024, and the Expectations index fell -0.3 pts to 87.4.
• The manufacturing sector index declined -1.5 pts. Uncertainty among manufacturing companies grew especially strongly.
• The trade sector index fell the most among the business sectors, down -3.2 pts to -27.0. Expectations and current conditions deteriorated with pessimism especially strong in the wholesale sector.
• In construction, the business climate was at its highest level since May 2023 after an increase of 2.4 pt. This was due to significantly improved expectations.
• In the service sector, the business climate improved by 0.3 pts. The companies were more satisfied with the current business situation. Expectations remained slightly skeptical.