The business climate in Germany reaches its highest level in a year

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The business climate in Germany improved this June to reach its highest level in more than a year. The Evo Institute for Economic Research in Munich announced on Tuesday that the business climate index in Germany has increased by 0.9 points to 88.4 points this month.

The most important German economic index has increased for the sixth month in a row, reaching its highest level since May 2024.

“The German economy is gradually increasingly confident,” said the head of the institute, Clemens Vost.

However, the current survey does not reflect a comprehensive reaction to the recent escalation in the conflict in the Middle East. After the start of the Israeli attack on Iran on June 13, the Evo Institute reported in response to an inquiry that 18 percent of the responses had not yet arrived.

The vast majority of responses are always received at the beginning of the survey, that is, in the first week of the month.

In its report, the institute indicated that there is a trend that tends towards pessimism slightly in the industrial sector and a slight increase in the level of uncertainty. In other sectors (service providers, construction, and trade), no fundamental changes have been observed: stated in the Institute’s report: “Based on the development of the current situation, we will see corporate reactions in the next July poll.”

Economists expected the Evo index to rise in June, but with an average of only 88 points. The poll, which included about 9,000 companies, showed a slight improvement in assessing the current situation.

However, future business expectations are assessed as much better. The morale in the services sector has improved significantly. On the other hand, the business climate in industrial companies only improved.