The ifo Business Climate Index for Germany rose 0.9 pts to 88.4 (vs 88.2 expected) in June, its highest level since May 2024, driven by a sharp rise in expectations and modest improvement in current conditions.

• The Expectations Index jumped 1.7 pts to 90.7 (vs 90.0 expected), while the Situation Index rose 0.1 pts to 86.2 (vs 86.5 expected).
• The manufacturing climate was stable at -13.7, as optimism about the future was offset by weak current demand and thin order books.
• The services sector saw a notable rebound, with the index rising to +3.8 (from -0.4), driven by stronger expectations, especially among business-related services.
• Trade sentiment improved to -19.2 (from -20.3), led by better wholesale conditions, while retail slightly worsened.
• Construction continued its recovery, with the index rising to -15.1 (from -18.1), the highest since early 2023, though skepticism remains.