German business climate improves further in May to 11-month high

By Mucahithan Avcioglu

ISTANBUL (AA) - Germany’s business climate index was up in May from 86.9 points to 87.5 points month-on-month, reaching its highest level since June 2024, the Munich-based Ifo Institute for Economic Research said Thursday.

The market expected the figure to increase to 87.4 points for the month.

The rise was due to less skeptical expectations. However, companies assessed their current business situation as less favorable, the institute said.

The recent sharp rise in uncertainty among companies has eased somewhat and the German economy is slowly regaining its footing, it added.

The manufacturing index rose significantly as the companies revised their expectations upward and they also assessed their current situation as better.

In the service sector, the index continued to improve due to improved expectations. However, the current situation was assessed less positively.

The trade index also improved as the expectations in particular rose sharply in both wholesale and retail trade and traders were also more satisfied with their current situation.