Germany’s ifo Business Climate Index rose 0.2 pts to 88.6 (vs 89.0 expected) in July 2025, continuing its modest upward trend but still signaling sluggish momentum.

• The Expectations Index rose 0.1 pts to 90.7, while the Current Situation Index improved 0.3 pts to 86.5, both at their highest since January.
• Manufacturing sentiment rose to -11.8 (from -13.9), with better assessments of the current situation, though order flows remained weak and capacity use rose just slightly to 77.2%.
• Services slipped to 2.7 (from 3.8) as IT services weakened, offsetting improvement in logistics and transport firms.
• Trade worsened slightly to -20.2 (from -19.2) as expectations declined despite a small uptick in present conditions.
• Construction improved to -14.0 (from -15.1), the best since 2022, though order backlogs remain low.