According to the most recent survey from the Munich-based Ifo Institute, business sentiment has reached increasingly high levels in Germany. The Business Climate Index rose to 115.1 points in June 2017 from a previous level of 114.6 points in May. The increase points to a high level of satisfaction among German businesses regarding the country’s current business climate as well as a strong level of optimism for the future.


In the manufacturing sector, the index rose slightly as assessments of the current business situation remained relatively stable at a high level.

In the wholesaling sector, the index rose for the third month in a row. June’s reading marks the highest level since December 2010.

The index most notably improved in the retail sector, showing a high level of optimism about the short term business outlook among German retailers.

The index declined for the construction sector as contractors marginally decreased their assessments of both the current business situation as well as their expectations for the future. 

In total, June’s reading reflects the strong performance of the German economy this quarter.