Improved business climate in Germany
Companies are more optimistic concerning their current business situation and future development. This is a ray of hope for the German economy.
Munich (dpa/d.de) – Economic sentiment in Germany has brightened for the second month in a row in June, as uncertainty due to the Iran war has been declining. The Munich-based research institute Ifo reports that its business climate index rose by 0.6 points to 85.6 points.
The mood among the 9,000 companies surveyed has improved more strongly than expected. Companies are more optimistic both concerning their current business situation and business prospects, according to Ifo.
Ifo President Clemens Fuest has the impression that the respondent companies have hopes that the geopolitical situation is going to improve. The prospect of the USA and Iran concluding a framework agreement for ending the Iran war had caused oil prices to drop appreciably and reduced the strain on the economy, he said.
Improved business sentiment could be observed across all parts of the German economy, in particular in the service and manufacturing sector. The transport and logistics industry has recovered, while the situation remains challenging in the tourism and automotive industries.
Experts believe that the planned social system reforms could further improve the mood among German businesses and make an economic upswing more likely.
