Germany’s Ifo Business Climate Rises to 89.0 in August

Germany’s closely watched Ifo Business Climate Index rose to 89.0 in August from 88.6 in July, topping the consensus forecast of 88.8 and marking a modest improvement in sentiment among the country’s executives. The Expectations component, which gauges firms’ six-month outlook, climbed to 91.6 from 90.7 and beat economists’ projection of 90.5, suggesting companies are slightly more optimistic about the months ahead. By contrast, the Current Assessment measure edged down to 86.4 from 86.5, slipping short of the predicted 86.7 and indicating that managers still view present conditions as subdued. The mixed set of figures signals that while German businesses see tentative signs of recovery, near-term activity remains constrained. Economists track the Munich-based Ifo Institute’s survey as an early indicator of economic momentum in Europe’s largest economy.