German business confidence rose for the third month in a row in June. The Ifo institute in Munich reported that its business climate index, based on a survey of 7,000 executives, increased to 85.9 from 84.3 in May. The index reached a 26-year low of 82.2 in March. As far as I can see, this isn't exactly a whole big deal. Just more of the same for now.
In terms of areas of activity, retail sales show no improvement, construction is up slightly, and manufacturing keeps hovering near the bottom.
Ifo’s measure of expectations increased to 89.5 from 86 while a gauge of current conditions eased to 82.4 from 82.5. It is obvious that the current situation in June is no better than March - in fact the conditions are still the worst to date, and all the work is being done by "expectations". It would be really, really interesting to understand just what is driving those expectations.
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