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 the
Eurozone, he added.
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