German business climate unexpectedly rebounded in June, results of a key survey revealed Tuesday. The business climate index climbed to 101.8 in June from 101.5 in May, the Munich-based Ifo Institute for Economic Research said. Economists had forecast slight decrease to 101.2.
"June's rise in the German Ifo is a relief amid growing evidence elsewhere that troubles in the periphery are starting to damage sentiment in the core euro-zone countries," said Jennifer McKeown, an economist at Capital Economics.
A measure for current economic conditions in Germany rose for the fourth straight month in May, to 101.1 from previous month's 99.4. That was also above the expected reading of 99.8. But, the expectations index declined for the second consecutive month to 102.4 from 103.7, below the forecast of 102.7.
ING Bank economist Carsten Brzeski said the only worry the German economy currently face is the sluggish domestic demand. For the time being, the German export engine is running smoothly, making Germany the economic powerhouse of theEurozone, he added.
For comments and feedback contact: editorial@rttnews.com
June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.