German business sentiment rises more than expected in July, Ifo survey finds

By Maria Martinez

BERLIN, July 27 (Reuters) – Business morale in Germany rose more than expected in July, thanks to significantly improved expectations, a survey showed on Monday.

The Ifo institute said its business climate index rose to 86.6 from a slightly upwardly revised 85.7 in June.

Analysts polled by Reuters had predicted an increase to 86.0.

“Despite the uncertain situation in the Persian Gulf, the German economy is showing less pessimism,” Ifo president Clemens Fuest said.

Economic expectations recorded a strong increase, rising from 84.3 in June to 86.7 in July.

However, companies were slightly less satisfied with their current business performance; The index fell to 86.5 in July from 87.0 in the previous month.

The survey showed that business confidence is increasing across all economic sectors.

(Reporting by Miranda Murray, Editing by Linda Pasquini)