German Business Sentiment Rises to Highest Level in More Than Two Years

By Xavier Fontdegloria

German business sentiment improved again in June, reaching a more than two-year high as reopening boosted firms’ optimism on current conditions and expectations.

The Ifo business-climate index came in at 101.8 points in June compared with the 99.2 points registered in May, according to data from the Ifo Institute released Thursday. The reading beats the consensus forecast from economists polled by The Wall Street Journal, who expected the index to increase to 100.5.

“Sentiment among German managers has improved markedly once again (…) The German economy is shaking off the coronavirus crisis,” the report said.

The index reached in June the highest level since November 2018, when it stood at 101.9 points.

The measurement which gauges firms’ current business situation climbed to 99.6 in June from 95.7 in May. Similarly, the expectations component rose to 104.0 in June from 102.9 in May, suggesting a more…

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