ifo: Business Climate Index Rises in June 2026

Sentiment among managers in Germany has improved. The ifo Business Climate Index rose to 85.6 points in June, up from 85.0 points in May . Companies assessed their current business situation more positively. Expectations were also somewhat less skeptical. Firms perceive the business environment as less uncertain. German companies are hoping for geopolitical tensions to ease.

Advert

In manufacturing, the index rose due to noticeably improved expectations. Assessments of the current business situation were revised slightly downward. The number of new orders declined again.

In the service sector, the business climate improved. Service providers were noticeably more satisfied with current business. Expectations remained almost unchanged. Companies continue to be skeptical. The transport and logistics sector was able to continue its recovery. In tourism, by contrast, the situation remains difficult.

In trade, the business climate rose again. Companies were more satisfied with the current situation. Expectations also increased markedly. However, the road to recovery is still long.

In construction, the business climate improved. This was due to less pessimistic expectations. Assessments of the current business situation remained unchanged. Many companies complain about a lack of orders.

More information: www.ifo.de

ifo Institut für Wirtschaftsforschung e.V., München