Confidence and recovery gathers pace with improvements observed in manufacturing, services, trade, and construction
Business confidence in Germany has risen to its highest level in a year, as Europe’s largest economy continues to recover despite persistently high energy prices and geopolitical uncertainty.
The Ifo Institute, a Munich-based research body, reported on Tuesday that its Business Climate Index, a closely watched gauge of private sector sentiment, rose from 86.7 in July to 88.8 points in August – the fourth consecutive monthly increase and the highest level since August last year.
Improvements were observed across manufacturing, services, trade, and construction. Companies also described their current situation as more satisfactory and revised their business expectations “significantly upward”, said Clemens Fuest, Ifo’s president.
“Despite another rise in energy prices, the German economy is recovering,” Fuest added.
